Facebook Revenue Up 42% But Misses Estimates

Facebook Revenue Up 42% But Misses Estimates

The FINANCIAL -- Facebook, Inc. on April 22 reported financial results for the quarter ended March 31, 2015.

"This was a strong start to the year," said Mark Zuckerberg, Facebook founder and CEO. "We continue to focus on serving our community and connecting the world."             

First Quarter 2015 Operational Highlights

Daily active users (DAUs) were 936 million on average for March 2015, an increase of 17% year-over-year.
Mobile DAUs were 798 million on average for March 2015, an increase of 31% year-over-year.
Monthly active users (MAUs) were 1.44 billion as of March 31, 2015, an increase of 13% year-over-year.
Mobile MAUs were 1.25 billion as of March 31, 2015, an increase of 24% year-over-year.

First Quarter 2015 Financial Highlights

Revenue - Revenue for the first quarter of 2015 totaled $3.54 billion, an increase of 42%, compared with $2.50 billion in the first quarter of 2014. Excluding the impact of year-over-year changes in foreign exchange rates, revenue would have increased by 49%.

Revenue from advertising was $3.32 billion, a 46% increase from the same quarter last year. Excluding the impact of year-over-year changes in foreign exchange rates, revenue from advertising would have increased by 55%.

Mobile advertising revenue represented approximately 73% of advertising revenue for the first quarter of 2015, up from approximately 59% of advertising revenue in the first quarter of 2014.

Payments and other fees revenue was $226 million, a 5% decrease from the same quarter last year, according to Facebook.

Costs and expenses - GAAP costs and expenses for the first quarter of 2015 were $2.61 billion, an increase of 83% from the first quarter of 2014. Non-GAAP costs and expenses were $1.70 billion in the first quarter of 2015, up 57% compared to $1.09 billion for the first quarter of 2014.

Income from operations - GAAP income from operations for the first quarter of 2015 was $933 million, a 13% decrease compared to $1.08 billion for the first quarter of 2014. Non-GAAP income from operations for the first quarter of 2015 was $1.84 billion, up 30% compared to $1.42 billion for the first quarter of 2014.

Operating margin - GAAP operating margin was 26% for the first quarter of 2015, compared to 43% in the first quarter of 2014. Non-GAAP operating margin was 52% for the first quarter of 2015, compared to 57% for the first quarter of 2014.

Provision for income taxes - GAAP income tax expense for the first quarter of 2015 was $420 million, representing a 45% effective tax rate. Non-GAAP effective tax rate would have been approximately 35%.

Net income and EPS - GAAP net income for the first quarter of 2015 was $512 million, down 20% compared to $642 million for the first quarter of 2014. Non-GAAP net income for the first quarter of 2015 was $1.19 billion, up 28% compared to $926 million for the first quarter of 2014. GAAP diluted EPS was $0.18 in the first quarter of 2015, down 28% compared to $0.25 in the first quarter of 2014. Non-GAAP diluted EPS for the first quarter of 2015 was $0.42, up 20% compared to $0.35 in the first quarter of 2014.

Capital expenditures - Capital expenditures for the first quarter of 2015 were $502 million.

Cash and cash equivalents and marketable securities - Cash and cash equivalents and marketable securities were $12.41 billion at the end of the first quarter of 2015.

Free cash flow - Free cash flow for the first quarter of 2015 was $1.20 billion.

 

Author: The FINANCIAL