Facebook Inc NASDAQ:FB released the earnings results from its third quarter after closing bell tonight, posting non-GAAP earnings of 43 cents per share on $3.2 billion in revenue, a 59% increase. Analysts had been expecting earnings of 40 cents per share on $3.11 billion in revenue. GAAP earnings per share were 30 cents.
In the same quarter last year, Facebook Inc NASDAQ:FB Beats Earnings Estimates posted non-GAAP earnings of 25 cents per share, GAAP earnings of 17 cents per share and $2.02 billion in revenue.
“This has been a good quarter with strong results,” said Facebook founder and CEO Mark Zuckerberg in a statement. “We continue to focus on serving our community well and continue to invest in connecting the world over the next decade.”
Key metrics from Facebook’s earnings report
The social network reported 864 million daily active users, 1 9% increase year over year. Mobile daily active users grew 39% to 703 million. Monthly active users increased 14% to 1.35 billion, which was right in line with what Wall Street wanted to see, while mobile monthly active users increased 29% to 1.2 billion.
Facebook Inc NASDAQ:FB reported $2.96 billion in ad revenue, a 64% increase year over year. Mobile ad revenue was about 66% of total revenue, up from about 49% in the same quarter last year and exactly what Wall Street wanted to see. That’s compared to 61% of total revenue in the second quarter. Revenue from payments and other fees rose 13% to $246 million.
Income from operations was $1.4 billion on a GAAP basis, a 90% increase year over year. The GAAP operating margin was 44%, compared to 37% last year. Capital expenditures were $482 million, while free cash flow was $766 million for the third quarter. GAAP costs and expenses rose 41% to $1.81 billion.
Wall Street isn’t excited about Facebook (FB)
Even though tonight’s results were a slight beat, Wall Street doesn’t seem to be too thrilled. As of this writing, shares were little moved, perhaps because the earnings results matched up almost exactly with what analysts wanted. With no upside surprise, investors didn’t get too excited, at least not at first.
Facebook Inc NASDAQ:FB is faring better than Twitter Inc NYSE:TWTR did yesterday, however, as Twitter shares got hammered after the company posted in-line results with a slight miss on user growth.