Facebook’s quarterly earnings report is out for the 2nd quarter of 2015, and they are a mixed collection of both positives and negatives. While Facebook beat street’s $3.99 Billion revenue estimate by clocking $4.04 Billion, its actual profits, i.e. GAAP net income year-over-year fell sharply, resulting in an almost 5% drop in share price during after-hours.
As revenues beat estimates, Facebook’s EPS too clocked slightly above estimates to $0.50 per share, against the $0.47 expected. However, a steep decline in GAAP net income, from $791 Million last year to $719 Million this year resulted in Facebook’s shares going down by close to 5% in after-hours trading.
Coming to userbase, monthly active users are now over 1.49 Billion across the globe, which is more than 20% of the total world population. Daily Active Users were 968 million on average for June 2015, an increase of 17% year-over-year.
Mobile continues to be a stronghold for Facebook, with the company seeing Mobile DAUs clocking 844 million on average for June 2015, an increase of an impressive 29% year-over-year. This increase could be fuelled by Facebook’s numerous initiatives to give emerging nations, easier access to its social networking platform.
Mobile Monthly Active Users were 1.31 billion as of June 30, 2015, an increase of 23% year-over-year, thus further resulting in a robust 76% growth in advertising revenues, up from 73% Facebook last quarter.
Here are a few more, relevant figures for you :
- Capital expenditures – Capital expenditures for the second quarter of 2015 were $549 million.
- Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $14.13 billionat the end of the second quarter of 2015.
- Free cash flow – Free cash flow for the second quarter of 2015 was $1.33 billion.
Overall, this was a decent quarter for Facebook, specially considering the fact that it missed on estimates in the first quarter of this year. CEO Mark Zuckerberg said,
This was another strong quarter for our community. Engagement across our family of apps keeps growing, and we remain focused on improving the quality of our services.
Instagram, owned by Facebook, is also set to announce its own earnings report, and unofficially, eMarketer estimates Instagram will hit $595 million in revenue this year.