This Day On The Street
Continue to site
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

Facebook Shares Rise as First-Quarter Ad Revenue Tops Expectations

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.

"Facebook's business is strong and growing, and this quarter was a great start to 2014," said founder and CEO Mark Zuckerberg in the earnings 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."

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. Payments and other fees revenue arrived at $237 million.

Must Read: Facebook Earnings: Expect a Bullish Revenue Decline

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


WATCH: More market update videos on TheStreet TV | More videos from Kori Hale

The company 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.

Costs increased during the quarter. GAAP costs and expenses for the first quarter of 2014 were $1.43 billion, a rise of 32% from the first quarter of 2013, driven primarily by increased headcount and infrastructure expenses. Capital expenditures for the first quarter were $363 million.

Overall, first-quarter GAAP net income was $642 million, up 193% compared to a year ago. Excluding share-based compensation and related payroll tax expenses and income tax adjustments, non-GAAP net income was $885 million, up 184%. Excluding these items, non-GAAP diluted EPS was 34 cents, up 183%. The Wall Street EPS target was 24 cents.

Facebook also announced that David Ebersman has informed the company of his intention to step down as chief financial officer after serving in the position for almost five years. On June 1, 2014, he will be succeeded as CFO by David Wehner, currently Facebook's vice president of corporate finance and business planning. Ebersman will remain with the company through September to help with the transition of his responsibilities.

Shares were rising more than 2% in afterhours trading at last check.

Facebook will host a conference call to discuss the results at 2 p.m. PT or 5 p.m. ET.

-- Written by Andrea Tse in New York

Follow @atwtse
>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
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
SYM TRADE IT LAST %CHG
FB $87.28 0.00%
AAPL $126.44 0.00%
GOOG $523.40 0.00%
TSLA $280.02 0.00%
YHOO $39.38 0.00%

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs