If yesterday it was doom and gloom for tech stocks, then today it’s Facebook’s turn for soom upside down frown turning boom. Moments ago the social network reported another round of blowout results, as follows:
- FACEBOOK 1Q REV. $5.38B, EST. $5.27B
- FACEBOOK 1Q ADJ. EPS 77C, EST. 63C
- FACEBOOK 1Q DAUS 1.09B, EST. 1.06B (2 EST.)
- FACEBOOK 1Q MAUS 1.65B , EST. 1.62B
Some more details on the user growth:
- Daily active users (DAUs) – DAUs were 1.09 billion on average for March 2016, an increase of 16% year-over-year.
- Mobile DAUs – Mobile DAUs were 989 million on average for March 2016, an increase of 24% year-over-year.
- Monthly active users (MAUs) – MAUs were 1.65 billion as of March 31, 2016, an increase of 15% year-over-year.
- Mobile MAUs – Mobile MAUs were 1.51 billion as of March 31, 2016, an increase of 21% year-over-year.
And the financials:
- Mobile advertising revenue – Mobile advertising revenue represented approximately 82% of advertising revenue for the first quarter of 2016, up from 73% of advertising revenue in the first quarter of 2015.
- Capital expenditures – Capital expenditures for the first quarter of 2016 were $1.13 billion.
- Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $20.62 billion at the end of the first quarter of 2016.
- Free cash flow – Free cash flow for the first quarter of 2016 was $1.85 billion.
The quarter in charts. First DAU:
Then Mobile daily users:
Then Revenue by geography
And finally EPS, both GAAP and non-GAAP:
Additionally, the company also announced that its board has approved a proposal to amend and restate our existing certificate of incorporation to create a new class of non-voting capital stock, known as the Class C capital stock.
As the company explains, “If the proposal is approved, we intend to issue two shares of Class C capital stock as a one-time stock dividend in respect of each outstanding share of our Class A and Class B common stock. This proposal is designed to create a capital structure that will, among other things, allow us to remain focused on Mr. Zuckerberg’s long-term vision for our company and encourage Mr. Zuckerberg to remain in an active leadership role at Facebook. The adoption of the proposal is subject to the approval of our stockholders at our 2016 Annual Meeting of Stockholders to be held on June 20, 2016, and the record date for the payment of the Class C stock dividend would be set by the board of directors at a later date. More information will be available on our Investor Relations site and in our forthcoming proxy statement to be filed today.”
Marc Zuckerberg added the following note to the earnings release:
Everything we do at Facebook is focused on our mission to make the world more open and connected.
To maintain our focus on this mission, we have always been a founder-led company. This structure has helped us resist the short term pressures that often hurt companies. It has helped us grow our community, build our business and create shareholder value. It has given us the freedom to prioritize your product experience and invest in new apps like Instagram — decisions that don’t always pay off right away, but that we believe help us serve our community and our shareholders.
When I look out at the future, I see more bold moves ahead of us than behind us. We’re focused not on what Facebook is today, but on what it can be, and what it needs to be for our community. That means investing in areas like spreading connectivity, building artificial intelligence and developing virtual and augmented reality. I am committed to our mission and to leading Facebook there over the long term.
While helping to connect the world will always be the most important thing I do, there are more global challenges that I feel a responsibility to help solve — like helping to cure all diseases by the end of this century, upgrading our education system so it’s personalized for each student, and protecting our environment from climate change. That’s why Priscilla and I created the Chan Zuckerberg Initiative and committed to give 99 percent of our Facebook shares during our lives to advance human potential and promote equality.
Today, Facebook’s board of directors is announcing a proposal to create a new class of stock that will allow us to achieve both goals. I’ll be able to keep founder control of Facebook so we can continue to build for the long term, and Priscilla and I will be able to give our money to fund important work sooner. Right now, there are amazing scientists, educators and doctors around the world doing incredible work. We want to help them make a bigger difference today, not 30 or 40 years down the road.
If this proposal goes into effect, we’ll get to keep improving your Facebook experience the way we do today. And over the long term, I think you’ll have better services and be part of a stronger community as a result. I believe in our community and the good we can do in the world, and I’m looking forward to continuing this journey with you.
The kneejerk reaction in the afterhours has been to send the stock just shy of all time highs and was trading up nearly 7%.
… Even though for some reason Facebook’s tax rate tumbled from 36% to 27%.
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