On July 23, 2014, Facebook reported its Q2 2014 earnings, blowing away expectations on the top and bottom lines. Revenue went up 61% to nearly $3 billion and earnings per share were $0.42 — 12 cents more than analysts predicted.
Facebook's gross margins increased dramatically. In essence, the company makes way more in sales this year than it used to, but its cost-base for generating those sales increased only modestly. Income from operations was a staggering $1.4 billion — this time last year it was just $562 million.
The stock went up and flirted with $74, a rise of 4%, after the market closed, hitting an all time high.
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Here are the highlights:
- Revenues: $2.91 billion (analysts were expecting $2.81 billion). That's a nice beat.
- EPS non-GAAP: $0.42 (analysts were expecting $0.32) that's also a good beat.
- Monthly active users (MAUs): 1.32 billion, up 14%.
- Mobile MAUs: 1.07 billion, up 31%.
- Mobile revenue was 62% of ad revenue.
To give you a better idea of just how well-run a business Facebook has become, here's the top of the income statement. I've highlighted the way margins are expanding dramatically:
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And now for some charts!
Revenues: (Remember when people used to say Facebook has stopped growing?) Sales were up 61%:
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This is where that revenue comes from. America and Europe leading the way:
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Here's the picture regarding the users. Facebook added 41 million users last quarter:
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Facebook's mobile-only base is still growing:
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COMMENTARY:
The following audio is from a conference call between Mark Zuckerberg, CEO, Facebook, Sheryl Sandberg, COO, Facebook and David Wehner, CFO, Facebook and Wall Street stock analysts that was recorded on July 23, 2014 beginning at 17:00 PM ET. This audio was previously a live stream, and can be replayed anytime.
Courtesy of an article dated July 23, 2014 appearing on Business Insider and an article dated July 23, 2014 appearing in Seeking Alpha
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