Facebook Inc (FB) Smashes Earnings Expectations

Facebook Inc (FB) Smashes Earnings Expectations

Facebook Inc. (NASDAQ:FB) released the earnings results from its first quarter, posting earnings of 34 cents a share, excluding items, on revenue of $2.5 billion—a 72% increase year over year—for the March quarter. Analysts had been expecting the social network to post first quarter earnings of 24 cents per share—a 183% increase—on $2.34 billion in revenue. GAAP earnings per share were 25 cents, compared to 9 cents in the same quarter a year ago.

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“Facebook’s business is strong and growing, and this quarter was a great start to 2014,” said Mark Zuckerberg, Facebook Inc (NASDAQ:FB) founder and CEO, in a statement. “We’ve made some long term bets on the future while staying focused on executing and improving our core products and business. We’re in great position to continue making progress towards our mission.”

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Breaking down Facebook’s results

Investors have been hoping for continued growth in mobile advertising, and the company certainly delivered. Advertising revenue rose 82% to $2.27 billion. Mobile advertising revenue rose from 30% to 59% of Facebook Inc (NASDAQ:FB)’s total revenue. Revenues from payments and other fees was $237 million.

Facebook Inc (NASDAQ:FB) reported that monthly active users rose 15% to 1.28 billion during the quarter. Daily active users were 802 million, a 21% increase. Mobile daily active users rose 42% to 609 million, while mobile monthly active users rose 34% to 1.01 billion.

CFO Ebersman to step down

The social network also announced that Chief Financial Officer David Ebersman will step down this year and that David Wehner will succeed him on June 1.

“This has been a tough decision because Facebook is such a great company and has such a bright future ahead, but I’ve decided to move back into healthcare where I spent my career before Facebook,” Ebersman said in a statement. “It’s been a privilege working at Facebook and being part of such a great team. We have an incredibly talented finance organization, and I have complete confidence in Dave Wehner and his ability to lead the team going forward.”

Also today, the FTC approved Facebook Inc (NASDAQ:FB)’s bid to buy virtual reality headset maker Oculus VR. Recently the social network’s other acquisition, WhatsApp, revealed that it hit 500 million active users, which is a major milestone and seen as a positive for Facebook as the social network looks for more streams of revenue.

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Michelle Jones is editor-in-chief for ValueWalk.com and has been with the site since 2012. Previously, she was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Email her at Mjones@valuewalk.com.
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  1. To reach near 150 to 200 billion in share, let it show atleast minimum of 4 billion per quarter, else they better not boast too much with hype.

  2. One surprising thing which we noticed is, The desktop and mobile Hits rise in recent times were influenced by Fb pluggins added in many websites, as it has to hit FB domain to show the plugins to ‘Like’. when we analyzed more sites with traces ON, We were surprised to see many sites including many adult oriented sites which has no Fb plugins or relation, is also hitting Fb domain. Not sure how much Fb pays to these sites and what all information Fb collects of user from these sites, but we didn’t like this act.
    Also, I find instagram hitting fb to give some updates and may be now or in future Whatsapp will hit FB domain regularly from mobile. The sites which showcase Hit rising year on year include these hits plainly and doesn’t segregates it. Fb uses it
    to show improved user engagement, In reality it is opposite and i feel this is totally unethical and faked. Why should Fb do all these to increase share price. Can it be honest to its own investors?

    Also, for company claiming to be next google and close to half the share price should have revenue if not half, but at least 1/5th. some analyst exaggerating such a less Revenue rise is not a good thing and it makes us feel some kind of scam could have been in place. Requesting Value walk to bring unethical act to light if possible.

  3. Fishy, Any ways 150 billion in banks compounded would have given better returns. Good work compared to last year but over all, i expected more for money they were garnished.

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