Facebook meets expectations, posts profit in Q2
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.
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.
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.
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.
Comments
Who cares? Is Apple buying them? Are they going bankrupt yet and their patents being put up for Apple to buy?
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......
Quote:
Originally Posted by Tallest Skil
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.
Quote:
Originally Posted by digitalclips
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).
Originally Posted by blackbook
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.
Of course. It's Facebook.
And NOW . . . think of the connection between Apple and Facebook.
A big deal for both companies.
Quote:
Originally Posted by blackbook
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/
Their stock is down nearly 20% today, and at the lowest level since they went public. Wonder how Twitter would fare.
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.
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).
Quote:
Originally Posted by igamogam
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.
Quote:
Originally Posted by Gatorguy
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
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.
Quote:
Originally Posted by Gatorguy
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.
Quote:
Originally Posted by igamogam
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.
Quote:
Originally Posted by Rogifan
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?
Quote:
Originally Posted by igamogam
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.
Quote:
Originally Posted by Tallest Skil
Where's a Mr. Yuck sticker when you need one…
????
That'll do.
Please stop posting square black boxes.