Facebook Inc (FB) Earnings: What To Expect

Facebook Inc (FB) Earnings: What To Expect

Facebook Inc (NASDAQ:FB) is scheduled to release its first quarter earnings tomorrow, and most analysts are pretty positive on what that report will bring. On average, they’re expecting the social network to report earnings per share of 24 cents on $2.34 billion in revenue. Today Adobe Systems Incorporated (NASDAQ:ADBE) released the results of its social media trends survey.

That survey suggests double-digit sequential growth in click-through rates and ad impressions for Facebook Inc (NASDAQ:FB).

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Key findings from Facebook survey

Adobe’s Social Media Intelligence Report analyzes paid, earned and owned social media trends. To come up with the numbers, the company examined 260 million ad impressions, 226 million post impressions, 17 billion referred visits and 7 billion brand post interactions.

According to the results from the first quarter, Facebook Inc (NASDAQ:FB)’s advertising business may have registered a 20% quarter over quarter increase in click-through rates. The survey suggests that the social network’s ad impressions increased 41% sequentially, which is a surprise because of how strong the holiday quarter was and how the first quarter usually marks a slowdown.

The survey also suggests that Facebook Inc (NASDAQ:FB)’s auto-play video ads look a success. According to the report, video ad and post replays increased 785% year over year and recorded 25% higher engagement rates.

It appears as if Facebook Inc (NASDAQ:FB)’s revenue per visit also increased just a bit, by 2% sequentially, even after the strong holiday quarter. Meanwhile competitors Twitter Inc (NYSE:TWTR) and Yahoo! Inc. (NASDAQ:YHOO)’s Tumblr, declined quarter over quarter, although they were up year over year. Twitter’s revenue per visit fell 23% quarter over quarter, while Tumblr’s fell 36%.

Other findings of the survey

Adobe Systems Incorporated (NASDAQ:ADBE) also reported that Fridays drove the highest number of posts and engagement rates on social networks, with almost 25% of Facebook Inc (NASDAQ:FB) video plays and 16% post impressions occurring on that day of the week.

The researchers also found that ad clicks are outpacing impressions, as Facebook Inc (NASDAQ:FB)’s ad clicks rose 70% year over year and 48% quarter over quarter. Ad impressions increased 40% year over year and 41% sequentially. Click-through rate rose 160% year over year and 20% sequentially, although the social network’s cost per click slumped 2% year over year and 11% quarter over quarter.4

The survey found that brand posts with embedded video had 58% more engagement quarter over quarter and 25% more year over year. The social network’s video plays rose 785% year over year and 134% quarter over quarter. Text-only brand posts, however, are losing engagement and share. Posts with links increased 167% quarter over quarter and 77% year over year.

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