Seeking Alpha

Mobile 62% of Facebook's ad sales; MAUs rise 14% Y/Y

  • Facebook's (NASDAQ:FB) ad revenue rose 67% Y/Y in Q2 to $2.68B; Q1 growth was 82%. Mobile ad sales made up 62% of ad revenue, up from 59% in Q1 and 41% a year ago. Payments/other fees revenue rose 9% Y/Y to $234M.
  • Monthly active users (MAUs) +3% Q/Q and +14% Y/Y to 1.32B. Daily active users +3% Q/Q and +19% Y/Y to 829M. Mobile MAUs +6% Q/Q and +31% Y/Y to 1.07B (81% of total MAUs).
  • GAAP costs/expenses +22% Y/Y to $1.52B, a slowdown from Q1's 26% and Q4's 37%. R&D spend +43% to $492M, sales/marketing +33% to $358M.
  • Free cash flow was $872M, below net income of $1.09B. $469M was spent on capex.
  • FB +0.1% AH. Q2 results, PR, slides (.pdf).
Comments (15)
  • facebull
    , contributor
    Comments (2) | Send Message
     
    The revenue is 2.91 billion not 2.68
    23 Jul, 04:25 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (764) | Send Message
     
    Ad sales were $2.68B. Total revenue was $2.91B.
    23 Jul, 04:29 PM Reply Like
  • Tomal
    , contributor
    Comments (926) | Send Message
     
    ouch waiting for bear comments lol
    23 Jul, 04:32 PM Reply Like
  • Tai Yu
    , contributor
    Comments (236) | Send Message
     
    GAAP ttm EPS up to 'Q2 '12 is $0.92 while ttm EPS up to 'Q2'13 is 0.23. Annual growth is whopping 300%. At its Mar peak price of $72.59, trailing PE is 79 times. Granted the EPS growth of 300% cannot be sustained for a long time! FB is not expensive and may break record again.
    23 Jul, 04:39 PM Reply Like
  • Emmanuel Nogueira
    , contributor
    Comments (249) | Send Message
     
    Where are the bearish can kickers? I'm waiting for them to appear and let us know how FB will "eventually" slow down "maybe" it will be next quarter. It's "unsustainable" growth.
    23 Jul, 04:44 PM Reply Like
  • jmx
    , contributor
    Comments (11) | Send Message
     
    those $90 price targets are starting to look awfully conservative
    23 Jul, 04:47 PM Reply Like
  • 22643611
    , contributor
    Comments (2101) | Send Message
     
    Glad I jumped back in around $62 and held on
    23 Jul, 05:43 PM Reply Like
  • Johnwoods41
    , contributor
    Comments (115) | Send Message
     
    Great earnings well done, but there seems to be a problem, the growth rare of users is worryingly slow now, This really seems like Facebook figured out mobile in the last year and made a one time jump. At some stage the growth in users could well be met with a decline in price of advertising, how much can the revenues grow from here?
    23 Jul, 06:02 PM Reply Like
  • facebull
    , contributor
    Comments (2) | Send Message
     
    Eric Jhonsa yes sorry you are right my mistake i misread
    23 Jul, 06:36 PM Reply Like
  • Tai Yu
    , contributor
    Comments (236) | Send Message
     
    John Maynard Keynes says "market can remain irrational longer than you can remain solvent". For bears continue to believe that FB will be doomed one day and embark a shorting attempt presently, he or she is acting against the market. Yes the market could actually be proced wrong yet the stock can keep on surging longer than you think.

     

    23 Jul, 06:36 PM Reply Like
  • khepp
    , contributor
    Comments (22) | Send Message
     
    Revenues will grow because of whats app, they are the future. Revenue will come from moving money and many other product lines. The ride in this young company has just begun.
    23 Jul, 07:34 PM Reply Like
  • Tai Yu
    , contributor
    Comments (236) | Send Message
     
    In Q4 '13 rev was $2.585 and Q1 '14 saw lower rev of $2.502. As rev is one element that controls the bottom line, some investors might be concerned about an imminent earning ceiling. It is good to se a higher $2.68b. Earlier WhatsApp was acquired at an apparently ridiculous price, may be Mark wants to sustain the rev growth, proactively arresting an otherwise looming problem.
    23 Jul, 08:02 PM Reply Like
  • Emmanuel Nogueira
    , contributor
    Comments (249) | Send Message
     
    Q4 is stronger than Q1. Holiday ad budgets are much larger.
    23 Jul, 09:21 PM Reply Like
  • Tomal
    , contributor
    Comments (926) | Send Message
     
    Tai Yu, there is something called seasonality in sales. Maybe you should know it by now if you are into investing.

     

    Tell me why Apple's recent summer quarter sales are lower than holiday season sales ?
    24 Jul, 10:52 AM Reply Like
  • Tai Yu
    , contributor
    Comments (236) | Send Message
     
    Hi Tomal,

     

    Thanks for your comment.

     

    Brian Tracey is a global expert on the subject of self-improvement. He advocates flying with eagles rather than swimming with the ducks.Tracey also advises prior to making important decisions one should review the opinion of smart persons who stubbornly think differently. His logic being by scrutinizing the contrarian opinion one is less likely to avoid bias, identify blind spots and more likely stay away from the sin of data mining.

     

    I'm bullish on FB yet the market could not have cared less how I think. I have to thank profusely for the detail analyses appearing on Seeking Alpha both bullish and bearish.

     

    With regard to revenue, one way to alleviate the effect of seasonality is to compare on y/y basis. In a way forming a negative view towards a drop on q/q basis may be premature due again to seasonality. One may not want to trim one's position due to a drop of revenue on q/q basis especially if the drop is insignificant. Case in point is FB's rev in Q1 ' 14 compared with a slightly higher one in Q4 '13.

     

    Should revenue grows on y/y basis as well as on a q/q comparison the probability of a bullish take proved right is accentuated. Thanks to a drop of the general market, I have just initiated long calls. I have to watch the price movements closely like a hawk, to sell it expeditiously should FB closes below the gap formed on July 24, top at $74.51 and bottom at $71.33.

     

    FB may repeat its price action in late Jan '14, FB formed a breakaway gap on Jan 30, one day after its Q4 '13 earning and its spike thereafter is history.
    25 Jul, 11:42 AM Reply Like
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