This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Facebook Fails to Impress in Earnings Debut (Update 1)

Updated from 4:54 p.m. EST to provide executive comments from the conference call in the third and fifth paragraphs.

NEW YORK ( TheStreet) -- Facebook (FB - Get Report) tried to "friend" Wall Street as the company reported in-line earnings in its first quarterly report as a public company Thursday but the performance wasn't enough to stop shares from sinking in after-hours action.

The social networking giant reported non-GAAP earnings of $295 million, or 12 cents per share, on revenue of $1.18 billion. The average estimate of analysts polled by Thomson Reuters was for a profit of 12 cents a share in the June-ended period on revenue of $1.15 billion.

The non-GAAP profit excludes share-based compensation and related payroll expenses, Facebook said. GAAP expenses for the quarter were $1.93 billion, including stock based compensation, which totaled $1.3 billion. The headcount at end of quarter, was just over 4,000, CFO David Ebersman said on the conference call.

On a GAAP [generally accepted accounting principles] basis, Facebook lost $157 million, or 8 cents a share, in the latest quarter. The loss reflects costs related to the company's disastrous mid-May initial public offering. Specifically, Facebook said the GAAP loss largely reflects "the effect of the accounting treatment of pre-2011 RSUs [restricted stock units]."

"Our goal is to help every person stay connected and every product they use be a great social experience," said Mark Zuckerberg, Facebook founder and CEO in the press release. "That's why we're so focused on investing in our priorities of mobile, platform and social ads to help people have these experiences with their friends."

Zuckerberg addressed the question of mobile monetization on the call. He noted that Facebook is the most used app on a lot of platforms, and "we want to not have just apps, but be deeply integrated as well. We want to have apps built on top of Facebook." He said it didn't make sense for the company to build its own phone.

At the end of the quarter, Facebook had $3.9 billion in cash. As of June 30, the company said it had 955 million monthly active users, up 29% from a year ago. For the month of June, Facebook said daily active users were 552 million on average, up 32% from year-over-year.

Shares of Facebook closed the regular session down 8.5% to wind up at $26.84. In after-hours action, the stock was last quoted at $24.08, down 10.3%, on volume of 17.1 million, according to

Interested in more on Facebook? See TheStreet Ratings' report card for this stock.

Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices.

-- Written by Chris Ciaccia in New York

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
FB $117.58 0.00%
AAPL $93.74 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs