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Facebook meets expectations, posts profit in Q2

post #1 of 31
Thread Starter 
Facebook on Thursday announced its first-ever quarterly earnings as a publicly traded company, meeting Wall Street expectations with a profit of 12 cents per share on revenue of $1.18 billion.

The social networking giant's performance was almost exactly in line with consensus which estimated quarterly earnings to hit $0.12 per share on revenue of $1.16 billion. Facebook's IPO was listed on the NASDAQ stock exchange in early May as one of the biggest in tech history though the stock quickly tumbled in intraday trading.

Advertising revenue was up 28 percent for the second calendar quarter, reaching $992 million as monthly active users totaled 955 million for the period ending on June 30. While the monthly user count represented an increase of 29 percent year-to-year and met consensus, the number of daily active users blew away estimates with an average of 552 million in June. DAUs increased 32 percent year-over-year while consensus was at 19 percent.

Showing the greatest growth since last year was mobile active users which topped out at 543 million as of June 30 representing a 67 percent increase from the year ago quarter. Fueling a significant portion of Facebook's mobile growth are apps made for Apple's iOS which augment the social media experience like Facebook Messenger.

The announcement was not without its shortfalls, however, as it was revealed the company would have actually suffered a $157 million net loss amounting to a drop of $0.08 per share if a pre-2011 restricted stock unit compensation was counted in the quarterly results. Company spending was also high for the quarter at $413 million in capital expenditures, a year-to-year increase of 213 percent. Facebook also reported a GAAP operating loss of $743 million for the second quarter of 2012 compared to a GAAP operating income of $407 million in the year ago quarter.

More recently, the company launched its Facebook App Center which provides a hub for users to browse Facebook-integrated iOS and Android apps. On Wednesday the App Center went international and rolled out in Brazil, France, Germany, Russia, Spain, Taiwan and Turkey, according to Venture Beat.

Facebook


A recent report claimed Facebook hired a number of former Apple engineers to work on a reworked performance-minded iOS app for release sometime in the near future. The company is also said to be developing a self-branded smartphone to be built by HTC for release in late 2012 or mid-2013.

Facebook stock ended the day down 2.5 points or 8.5 percent and is seeing a further declines in after market trading, dropping another 2.8 points or 10.45 percent percent. As of this writing the stock is hovering just above $24.
post #2 of 31

Who cares? Is Apple buying them? Are they going bankrupt yet and their patents being put up for Apple to buy?

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #3 of 31
I long ago escaped FB but someone explain to me, is the revenue from ads alone or do they have other sources?
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
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Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini, SE30, IIFx, Towers; G4 & G3.
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post #4 of 31

I'll bet every bit of accounting leeway was fully put to use to "meet expectations." That was to be -- to wit -- fully expected, given that this is the first earnings announcement as a public company.

 

The real test will be a few weeks from now, when the lock-up agreements expire. Let's see what the 'insiders' do. I have my prediction......

post #5 of 31
Quote:
Originally Posted by Tallest Skil View Post

Who cares? Is Apple buying them? Are they going bankrupt yet and their patents being put up for Apple to buy?

FB is becoming a direct competitor to Apple and Google now with their App store and rumored hardware devices.

post #6 of 31
Quote:
Originally Posted by digitalclips View Post

I long ago escaped FB but someone explain to me, is the revenue from ads alone or do they have other sources?

Last quarter, it was something like 80% ads, 15% Zynga (which is tanking already), and 5% some miscellaneous stuff (e.g., some user-generated fees and such).

post #7 of 31
Originally Posted by blackbook View Post
FB is becoming a direct competitor to Apple and Google now with their App store and rumored hardware devices.

 

Where's a Mr. Yuck sticker when you need one… 

 

🏥 

That'll do.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #8 of 31

Of course. It's Facebook. 

 

And NOW . . . think of the connection between Apple and Facebook. 

 

A big deal for both companies. 

post #9 of 31
Quote:
Originally Posted by blackbook View Post

FB is becoming a direct competitor to Apple and Google now with their App store and rumored hardware devices.

Who knows how long the Facebook/Apple friendship will last. FB is supposedly working with HTC on a Facebook branded smartphone

 

"Facebook has partnered with handset maker HTC to produce a mobile phone that would be released in mid-2013, Bloomberg reported today.."

http://news.cnet.com/8301-1023_3-57480245-93/facebook-reportedly-working-with-htc-on-mobile-phone/

melior diabolus quem scies
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melior diabolus quem scies
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post #10 of 31

Their stock is down nearly 20% today, and at the lowest level since they went public. Wonder how Twitter would fare.

GIGO. The truth in all of life.
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GIGO. The truth in all of life.
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post #11 of 31

Dumping Facebook (for the second and final time) is the best thing I have done in many years. I actually talk to people again, I'm no longer a sellable commodity (if it's free - YOU are the product) and I don't feel I'm being tracked and analysed to winkle out buying behaviour (whether I want targeted ads or not).

Somehow I feel I'm ahead of the curve and despite initial interest from the financial markets FB is doomed to be just another bubble phenomenon which people will loose interest in when something new comes along. I hope I am right. Mind you, history is littered with mass madness.

post #12 of 31

I'm sure Twitter would do even worse. Both it and FB are pretty old-hat and they don't really have a reliable business model (I dropped Twitter for similar reasons to dumping FB).

post #13 of 31
Quote:
Originally Posted by igamogam View Post

I'm sure Twitter would do even worse. Both it and FB are pretty old-hat and they don't really have a reliable business model (I dropped Twitter for similar reasons to dumping FB).

Even so both will linger around just like Yahoo, and somehow after all these years Yahoo is still one of the most visited sites on the net.

 

Instagram is the new "it" social network and FB was smart to buy them, but they have no ads and no revenue stream at the moment but now have 80 million users.

post #14 of 31
Quote:
Originally Posted by Gatorguy View Post

Who knows how long the Facebook/Apple friendship will last. FB is supposedly working with HTC on a Facebook branded smartphone

 

"Facebook has partnered with handset maker HTC to produce a mobile phone that would be released in mid-2013, Bloomberg reported today.."

http://news.cnet.com/8301-1023_3-57480245-93/facebook-reportedly-working-with-htc-on-mobile-phone/

A Facebook phone may actually do well if its priced right. All of the games and apps most kids play are on FB now so for most kids an FB phone with Angry Birds and texting could be very attractive. Big thing would be pricing and if HTC actually makes it look "cool" and attractive which I think HTC is not capable of in the slightest

post #15 of 31

FB is taking quite the hit currently in after hours.  lost 8.5% today during regular trading, down another 7.6% currently in after hours.  That is painful.

post #16 of 31
Quote:
Originally Posted by Gatorguy View Post

Who knows how long the Facebook/Apple friendship will last. FB is supposedly working with HTC on a Facebook branded smartphone

 

"Facebook has partnered with handset maker HTC to produce a mobile phone that would be released in mid-2013, Bloomberg reported today.."

http://news.cnet.com/8301-1023_3-57480245-93/facebook-reportedly-working-with-htc-on-mobile-phone/

What is the point of a Facebook branded phone?  What would make it unique enough that someone would chose it over an iPhone, Galaxy S, One X, etc?  Seems as dumb as a Amazon branded phone.

post #17 of 31
Quote:
Originally Posted by igamogam View Post

I'm sure Twitter would do even worse. Both it and FB are pretty old-hat and they don't really have a reliable business model (I dropped Twitter for similar reasons to dumping FB).


FB doesn't do much for me but I use Twitter all the time.  I get more news off Twitter than anywhere else.  And things I'd never be exposed to via traditional news media or yahoo/google news aggregaters.

post #18 of 31
Quote:
Originally Posted by Rogifan View Post

What is the point of a Facebook branded phone?  What would make it unique enough that someone would chose it over an iPhone, Galaxy S, One X, etc?  Seems as dumb as a Amazon branded phone.

Facebook at least already has an independent App Platform that already has most of the Games that iPhone owners love.

 

What would make it unique? Teens can have everything they want and use in their pockets. Music via Spotify, Games, Notes, Messaging independent of the Cell providers. Lots to love for FB addicts and light core Smart Phone users (i.e. kids).

 

Only way it'll succeed is if its free, which it likely will be. My question is if it will be Android based or something unique?

post #19 of 31
Quote:
Originally Posted by igamogam View Post

Somehow I feel I'm ahead of the curve 

 

What's the point being 'ahead of the curve' in terms of social networking sites? By definition, only a small proportion of people will use the same site as you.

post #20 of 31
Appleinsider.com must be a redirect to Facebookinsider.com.
post #21 of 31
Quote:
Originally Posted by Tallest Skil View Post

 

Where's a Mr. Yuck sticker when you need one… 

 

🏥 

That'll do.

 

 

Please stop posting square black boxes.

post #22 of 31
Originally Posted by JerrySwitched26 View Post
Please stop posting square black boxes.

 

🆗

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #23 of 31

Meeting expectations.  Not meeting them.

 

Whose expectations? Analysts with a modicum of insight into companies.  Why are their expectations so important that they dictate the share price of a company and therefore the financial fate of investors?  How did their expectations turn into reasonable objectives for public companies?  

 

Apple didn't miss expectations.  Facebook didn't meet them.  The fact is the other way around.  Analysts missed on guessing Apple's 2nd quarter performance.  They guessed right with Facebook.
 

Maybe I sound like sour grapes because AAPL's drop cost me some potential profits. But I feel confident this will reverse itself. Nevertheless, it sucks big time when the value of your portfolio is based on whether a company's performance matches or exceeds the nearly wild guesses of those whose job title starts with "anal".


Edited by Harbinger - 7/26/12 at 3:23pm
post #24 of 31
Quote:
Originally Posted by blackbook View Post

FB is becoming a direct competitor to Apple and Google now with their App store and rumored hardware devices.

Sure they are. Just like all the other direct competitors who've all lost money in the space.
post #25 of 31

Most of it is from Ad, but a lot is from games people play, some might be generated from music that is sold through CD Baby, and then apps.  It would be nice to see a break down of their sources of revenue into different categories, but I don't know if they are going to release that information.

post #26 of 31
Quote:
Originally Posted by JerrySwitched26 View Post


Please stop posting square black boxes.

Grow up.
post #27 of 31
Quote:
Originally Posted by Harbinger View Post

Meeting expectations.  Not meeting them.

 

Whose expectations? Analysts with a modicum of insight into companies.  Why are their expectations so important that they dictate the share price of a company and therefore the financial fate of investors?  How did their expectations turn into reasonable objectives for public companies?  

 

Apple didn't miss expectations.  Facebook didn't meet them.  The fact is the other way around.  Analysts missed on guessing Apple's 2nd quarter performance.  They guessed right with Facebook.
 

Maybe I sound like sour grapes because AAPL's drop cost me some potential profits. But I feel confident this will reverse itself. Nevertheless, it sucks big time when the value of your portfolio is based on whether a company's performance matches or exceeds the nearly wild guesses of those whose job title starts with "anal".

Apple missed expectations, Facebook met them, it's really that simple. Expectations are based on past performance and forecast modeling by career analysts. The stock market is a gamble because of this, but your resentment against analysts is the same resentment people experience toward doctors when their family member couldn't be saved. Do you blame analysts when AAPL blows analysts expectations out of the water? Didn't think so and if you did, you wouldn't play with stocks to begin with. The fact that AAPL could exceed expectations consistently for so long is mind-blowing, as it becomes continuously more difficult. Lucky for shareholders, I see them exceeding expectations for quite some time, this is just a little bump in the road.

post #28 of 31
Quote:
Originally Posted by ErosLWS View Post

The stock market is a gamble because of this, but your resentment against analysts is the same resentment people experience toward doctors when their family member couldn't be saved.

Yes, the stock market is a gamble but that's the dumbest analogy I've seen here.

post #29 of 31
Originally Posted by anantksundaram View Post
Grow up.

 

You mean "update". Literally.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already fucked.

 

Reply
post #30 of 31
Quote:
Originally Posted by ErosLWS View Post

Apple missed expectations, Facebook met them, it's really that simple. Expectations are based on past performance and forecast modeling by career analysts. The stock market is a gamble because of this, but your resentment against analysts is the same resentment people experience toward doctors when their family member couldn't be saved. Do you blame analysts when AAPL blows analysts expectations out of the water? Didn't think so and if you did, you wouldn't play with stocks to begin with. The fact that AAPL could exceed expectations consistently for so long is mind-blowing, as it becomes continuously more difficult. Lucky for shareholders, I see them exceeding expectations for quite some time, this is just a little bump in the road.

I agreed with Harginger's view.

These analysts' guesses are guesses, if like you said they were based on past expectations how come all of them come up with different ones. Their guesses are based more on the current problems which Apple may faced but certainly not on past expectations, er, guesses.

Your doctor analogy is way out. You mean if a guy has terminal cancer you would still expect the doctor to save his or her life. I had come across a case of a guy who was in coma because of his brain cancer and when he experienced difficulty in breathing the doctor recommended to have surgery to help with the breathing.

I believe the performance of a company should be based on the merits of its earning and not on the wild guesses of the analysts.
post #31 of 31
Quote:
Originally Posted by Harbinger View Post Analysts missed on guessing Apple's 2nd quarter performance.  They guessed right with Facebook.

 

 


You should consider that their predictions most likely helped influence Apple stock that high in the first place. Beyond that, you're most likely invested in more than just Apple.

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