Facebook Reports Big Beat on Earnings

Here’s your quarterly update on Facebook for those interested.

They crushed it with huge revenues and EPS beats, but I’m still looking for hard numbers on their quarterly MAU/DAU growth, video views etc. I’m sure that will all be reviewed on their conference call in a few minutes. Via Reuters:

Facebook Inc (FB.O) reported a 51.7 percent jump in revenue for the final quarter of 2015 as new advertising formats and an improved mobile app drove a sharp rise in ad sales.

The company’s total revenue rose to $5.84 billion from $3.85 billion a year earlier, with ad revenue increasing 56.8 percent to $5.64 billion in the holiday shopping period, when spending on advertising typically spikes.

Net income attributable to common shareholders rose to $1.56 billion, or 54 cents per share, in the three months ended Dec. 31 from $696 million, or 25 cents per share in the same period of 2014.

Read entire article at http://www.msn.com/en-us/money/companies/facebook-revenue-ju…

As of now, they are up +7% in AH trading.

Here’s a snippet from Zacks:

At first glance, every important metric concerning Facebook’s growth has come in better than expected. Daily active users (DAU), monthly active users (MAU) and the mobile segments of both were all slightly more than company guidance. Of particular note was mobile advertising revenue, which hit $4.51 billion in the quarter; $4.09 billion was what had been expected. Also, Facebook reports that it has brought in $3.77 per user in Q4, up from the $3.43 analysts had been anticipating.

It was also reported that now over 90 percent of daily and monthly active Facebook users now access the site through mobile. You’d be forgiven for thinking Facebook’s “mobile problem” was eons ago, when in reality it was only a little more than a handful of quarters ago.

See more at: http://www.zacks.com/stock/news/205184/facebook-up-big-on-st…

Here’s what their numbers look like after this quarter:

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

EPS (non-GAAP)	        Q1		Q2		Q3		Q4
2013			0.12		0.19		0.27		0.32
2014			0.35		0.43		0.43		0.54
2015			0.42		0.50		0.57		0.79

Current (2015 Q4 Earnings):

Revenue Growth (billions)
2014 Q4 TTM Revenue = 12.466
2015 Q4 TTM Revenue = 17.927
Year Over Year Revenue Growth = 43.8%, previously 42.29%,

EPS Growth (non-GAAP)
2014 Q4 TTM Earnings = 1.75
2015 Q4 TTM Earnings = 2.28
Year Over Year EPS Growth = 30.29%, previously 32.7%%

P/E = (Check Current Price) 94.45/2.28 = 41.42

1YPEG = 41.42/30.29 = 1.37

You’ll notice that their revenue and EPS growth is accelerating again after a slight lag in Q1 and Q2. With WhatsApp near a billion users but not being monetized yet and Instagram still in its infancy of showing ads, I believe there is still a lot of growth to come.

MasterCard (MA) Ticker Guide
Long FB
See all my holdings at http://my.fool.com/profile/CMFCochrane/info.aspx


Hopefully that will bode well for Criteo!

I said I had yet to see active user metrics earlier, right after the earnings report had been released Well, Zucks opened the conference call with this gem:

More than 1.59 billion people now use Facebook each month and 1.04 billion every day, a growth of nearly 200 million people monthly and a 148 million people daily this year. More than 1.44 billion people use Facebook on mobile devices.

And how is business engagement going on the site? Later Zuckerberg added:

And when it comes to serving businesses, we’ve continued to focus on creating better ads and tools for our more than 2.5 million active advertisers. More than 50 million small businesses now use pages on Facebook and people post more than 2.5 billion comments on these pages each month.

What about Messenger and WhatsApp?

More than 800 million people now use Messenger monthly and in 2015 we grew that number by almost quarter of 1 billion while also increasing engagement…WhatsApp ended the year with nearly 1 billion monthly actives.

Oh, and mobile ad revenue was up 80% year-over-year. And Oculus Rift has begun shipping.

Lots of good news here and there appears to be a long runway of growth for Facebook yet.

Long FB


Agree with Ant. Time to revisit the CRTO thesis as the ad-blocking concern appears to be a non-issue or overblown at the very least.

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Maybe it’s just me, but it seems like ad blocking software and tools like “F. B. Purity” and “Social Fixer” corral adverts pretty effectively. That aside, the F/B ads don’t seem to actually be generating sales (at least as far as my informal survey of friends goes). OTOH, as a place for adverts focusing on consumer awareness (as opposed to sales), F/B might be a great site.