Facebook Hits a Grand Slam With 4Q Earnings

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Shares of Facebook (NASDAQ:FB) closed the regular session on Wednesday down 2.92 percent at $53.53, but is up big this morning over 15 percent in morning trading after reporting fourth-quarter and full-year results that beat analyst expectations.

Revenue increased 63 percent on the year in the fourth-quarter to $2.59 billion, beating the mean analyst estimate of $2.33 billion. GAAP income from operations increased 116.6 percent to $1.13 billion, while adjusted (non-GAAP) income from operations increased 98 percent to $1.46 billion. GAAP operating margins increased 11 percentage points to 44 percent, while non-GAAP operating margins increased 10 percentage points to 56 percent. GAAP net income increased more than 700 percent to $523 million while non-GAAP net income increased 83 percent to $780 million. GAAP earnings increased 566 percent to 20 cents per share, while adjusted earnings increased 82 percent to 31 cents per share, beating the mean analyst estimate of 27 cents. Founder and CEO Mark Zuckerburg appropriately summed up the situation, commenting in the earnings report that, “It was a great end to the year for Facebook.”

Overall revenue from advertising increased 76 percent on the year in the fourth-quarter to $2.34 billion, accounting for just over 90 percent of total revenues. Mobile advertising revenue accounted for 53 percent of total ad revenue, a share that is up from 23 percent in the year-ago quarter.

Facebook daily active users (or, DAUs) increased 22.5 percent on the year to 757 million, with the highest growth in Asia (+5.8 percent to 200 million). Monthly active users (or, MAUs) increased 16.3 percent on the year to 1.23 billion, with the highest growth once again in Asia (+4.8 percent to 368 million). Total mobile DAUs increased 48.67 percent on the year to 556 million, or about 45 percent of total MAUs.

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