Facebook Reports 2017 Q4 Earnings

Like PayPal, it’s selling off in AH a bit, but numbers look sound. From the press release:

“2017 was a strong year for Facebook, but it was also a hard one,” said Mark Zuckerberg, Facebook founder and CEO. “In 2018, we’re focused on making sure Facebook isn’t just fun to use, but also good for people’s well-being and for society. We’re doing this by encouraging meaningful connections between people rather than passive consumption of content. Already last quarter, we made changes to show fewer viral videos to make sure people’s time is well spent. In total, we made changes that reduced time spent on Facebook by roughly 50 million hours every day. By focusing on meaningful connections, our community and business will be stronger over the long term.”

See the entire release at https://investor.fb.com/investor-news/press-release-details/…

Operating margin is 57%, and that comes with growth in headcount to 25.1K employees, 47% increase year over year. Nice.

Here’s the numbers:


Revenue (billions)	Q1		Q2		Q3		Q4
2013			1.458		1.813		2.016		2.585
2014			2.502		2.910		3.203		3.851
2015			3.543		4.042		4.501		5.841
2016			5.382		6.436		7.011		8.809
2017			8.032		9.321		10.328		12.779

EPS (Diluted)		Q1		Q2		Q3		Q4
2014							0.30		0.25
2015			0.18		0.25		0.31		0.54
2016			0.60		0.78		0.90		1.21
2017			1.04		1.32		1.59		2.21*

*adjusted for one-time tax hit from 2017 Tax Cuts and Jobs Act of ($0.77)

2017 Q4 Earnings (Current):

Revenue Growth (billions)
2016 Q4 TTM Revenue = 27.638
2017 Q4 TTM Revenue = 40.46
YOY TTM Revenue Growth = 46.4%, previous quarter 48%

EPS Growth (Diluted)
2016 Q4 TTM Earnings = 3.49
2017 Q4 TTM Earnings = 6.16
YOY TTM EPS Growth = 76.5%, previous quarter 83%

P/E (Check Current Price) = 186.90/6.16 = 30.34

1YPEG = 30.34/76.5 = 0.4

Here are some of the other quarter’s highlights:

DAUs (daily active users): 1.4B, +14% YOY
MAUs (monthly active users): 2.13B, +14% YOY
Cash and cash equivalents: $41.71B, previous quarter $38.29B, +8.9% sequentially
Cap Ex: $2.26B, previous quarter $1.76B, up 28.4% sequentially
Mobile advertising revenue: Made up 89% of all revenue, up from 84% of all revenue in prior year’s quarter

Matt
Long FB
MasterCard (MA), PayPal (PYPL), Skechers (SKX) and Square (SQ) Ticker Guide
See all my holdings at http://my.fool.com/profile/TMFCochrane/info.aspx

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it’s selling off in AH a bit, but numbers look sound.

The Bid is currently $191, so it looks like investors are somewhat pleased.

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Invest wisely my friends
CMFSoloFool - Ticker Guide / Share Holder
Profile and holdings: https://goo.gl/TYTU4S

A comment from Sandberg indicating that the changes to the News Feed will reduce time spent on Facebook, but that it shouldn’t affect monetization has turned the stock around.

CMFBLSH
holdings: http://my.fool.com/profile/CMFBLSH/info.aspx

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