I continue to think Facebook represents what might be one of the best values in the stock market today, even while acknowledging it has been “dead money” for the past 18 months. Yet despite everything being thrown at it, the underlying business itself continues to thrive. Growing revenue 26%, operating margin 42%, $45B in cash on the balance sheet. Expenses are still rising, but that won’t go on forever.
Levers remain to be pulled too, in reference to generating additional revenue streams, including commerce on Instagram and experimenting with the monetization of WhatsApp and Messenger. From the press release:
“We had a good quarter and our business and community continued to grow,” said Mark Zuckerberg, Facebook founder and CEO. “We are focused on building out our privacy-focused vision for the future of social networking, and working collaboratively to address important issues around the internet.”
From https://s21.q4cdn.com/399680738/files/doc_financials/2019/Q1…
Shares were up about 8% in AH trading.
Here’s a quick look at the numbers:
Revenue (billions) Q1 Q2 Q3 Q4
2013 1.5 1.8 2.0 2.6
2014 2.5 2.9 3.2 3.9
2015 3.5 4.0 4.5 5.8
2016 5.4 6.4 7.0 8.8
2017 8.0 9.3 10.3 13.0
2018 12.0 13.2 13.7 16.9
2019 15.1
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*
2018 1.69 1.74 1.76 2.38
2019 1.89**
* Adjusted for impact of Tax Cuts and Jobs Act
**Adjusted for $3B legal expense related to FTC inquiry
2019 Q1 Earnings (Current):
Revenue Growth (billions)
2018 Q1 TTM Revenue = 44.6
2019 Q1 TTM Revenue = 58.9
YOY TTM Revenue Growth = 32.1%, previous quarter 37.3%
EPS Growth (Diluted)
2018 Q1 TTM Earnings = 6.81
2019 Q1 TTM Earnings = 7.77
YOY TTM EPS Growth = 14.1%, previous quarter 22.9%
P/E (Check Current Price) = 182.58/7.77 = 23.5, previously 19.9
Trailing 1Y PEG = 23.5/14.1 = 1.67
Here are some of the other quarter’s highlights:
DAUs (daily active users): 1.56B, +8% YOY
MAUs (monthly active users): 2.38B, +8% YOY
Mobile advertising revenue: Made up 93% of all revenue, up from 91% in prior year’s quarter
Cash and cash equivalents: $45.24B, previous quarter $41.11B
Cap Ex: $3.96B, previous quarter $3.34B
Head count: 37,773, +36% YOY
Operating margin: 42%, after adjusting for legal expense
Matt
Long FB
Phoenix 1 Contributor
MasterCard (MA), PayPal (PYPL), and Square (SQ) Ticker Guide
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