Facebook has reported positive financial results for the quarter ended 31 March 2014.
“Facebook’s business is strong and growing, and this quarter was a great start to 2014,” says Mark Zuckerberg, Facebook founder and CEO. “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.”
First quarter 2014 operational highlights include:
* 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 2014, 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 11-billion as of 31 March, 2014, an increase of 34% year-over-year.
Revenue for the first quarter of 2014 totalled $2,50-billion, an increase of 72%, compared with $1,46-billion in the first quarter of 2013. Revenue from advertising was $2,27-billion, an 82% increase from the same quarter last year.
Mobile advertising revenue represented approximately 59% of advertising revenue for the first quarter of 2014, up from approximately 30% of advertising revenue in the first quarter of 2013. Payments and other fees revenue was $237-million for the first quarter of 2014.
GAAP costs and expenses for the first quarter of 2014 were $1,43-billion, an increase of 32% from the first quarter of 2013, driven primarily by increased headcount and infrastructure expense. Excluding share-based compensation and related payroll tax expenses, non-GAAP costs and expenses were $1,13-billion in the first quarter of 2014, up 26% compared to $895-million for the first quarter of 2013.
For the first quarter of 2014, GAAP income from operations was $18-billion, up 188% compared to $373-million in the first quarter of 2013. Excluding share-based compensation and related payroll tax expenses, non-GAAP income from operations for the first quarter of 2014 was $1,37-billion, up 144% compared to $563-million for the first quarter of 2013.
GAAP operating margin was 43% for the first quarter of 2014, compared to 26% in the first quarter of 2013. Excluding share-based compensation and related payroll tax expenses, non-GAAP operating margin was 55% for the first quarter of 2014, compared to 39% for the first quarter of 2013.
GAAP income tax expense for the first quarter of 2014 was $433-million, representing a 40% effective tax rate. Excluding share-based compensation and related payroll tax expenses, the non-GAAP effective tax rate would have been approximately 36%.
For the first quarter of 2014, GAAP net income was $642-million, up 193% compared to $219-million for the first quarter of 2013. Excluding share-based compensation and related payroll tax expenses and income tax adjustments, non-GAAP net income for the first quarter of 2014 was $885-million, up 184% compared to $312-million for the first quarter of 2013.
GAAP diluted EPS was $0,25 in the first quarter of 2014, up 178% compared to $09 in the first quarter of 2013. Excluding share-based compensation and related payroll tax expenses and income tax adjustments, non-GAAP diluted EPS for the first quarter of 2014 was $0,34, up 183% compared to $0,12 in the first quarter of 2013.
Capital expenditures for the first quarter of 2014 were $363-million.
Cash and marketable securities were $12,63-billion at the end of the first quarter of 2014.
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, Corporate Finance and Business Planning. Ebersman will remain with the company through September to ensure a seamless transition of his responsibilities.
