This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Facebook Earnings Live Blog Recap

 

Updated from 4:13 p.m. to include comments from the earnings call throughout.

NEW YORK (TheStreet) -- Facebook (FB - Get Report) reported on Wednesday first-quarter earnings and revenue that topped expectations as advertising revenues grew more than expected.
Revenue for the first quarter of 2014 totaled $2.5 billion, an increase of 72%, compared with $1.46 billion in the first quarter of 2013. First-quarter revenue of $2.36 billion was expected, according to Thomson ONE Analytics.

Revenue from advertising was $2.27 billion, an 82% increase from the same quarter last year. Mobile ad revenue represented about 59% of advertising revenue in the first quarter, up from about 30% of ad revenue the same time last year.

Analysts on average were expecting total ad revenue of $2.14 billion, a 71% increase year-over-year.

CFO David Ebersman said during the company's earnings call mobile ad revenue was up 7% sequentially despite the seasonal benefits of the fourth quarter.

"Mobile continues to be a big opportunity," chief operating officer Sheryl Sandberg underscored during the call. "Our goal is to make our ads as interesting and valuable as the organic content that you find on Facebook."

The company added that its shift to news feed ads have allowed for higher pricing because of higher engagement and click-through rates.

Facebook provided user-engagement numbers as of March. Daily active users (DAUs) were 802 million on average for March 2014, an increase of 21% year-over-year. Mobile DAUs were 609 million on average for March, an increase of 43% year-over-year. Monthly active users (MAUs) were 1.28 billion as of March 31, 2014, an increase of 15% year-over-year. Mobile MAUs were 1.01 billion as of March 31, an increase of 34% year-over-year.

"We tracked how many people use Facebook, not just every day, but what percent of people use it six out seven days a week ... this last quarter, that number surpassed 50%," said CEO Mark Zuckerberg.

Excluding share-based compensation and related payroll tax expenses and income tax adjustments, non-GAAP net income was $885 million, up 184%. Non-GAAP diluted EPS was 34 cents, up 183%. The Wall Street earnings estimate was 24 cents.

Facebook also announced that Ebersman has informed the company of his intention to step down as chief financial officer. On June 1, 2014, he will be succeeded as CFO by David Wehner, currently Facebook's vice president of corporate finance and business planning.

--Written by James Rogers, Andrea Tse and Antoine Gara in New York

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
FB $79.75 0.99%
AAPL $129.09 0.49%
GOOG $571.34 2.32%
TSLA $197.32 -2.96%
YHOO $44.11 -0.38%

Markets

DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs