Facebook Earnings Beat But Warns of Major Investment Year
Facebook Inc (NASDAQ:FB) posted earnings of 43 cents per share excluding certain items on $3.2 billion in revenue compared to analyst expected 40 cents per share on $3.11 billion. The company earned 30 cents per share compared to 17 shares, in GAAP earnings.
Daily active users were 864 million (+4.2% from 3 months earlier), with Monthly Active Users at $1.35 billion. The numbers for mobile were 703 million and 1.12 billion showing how smartphones and devices are taking over.
Ad revenue was up 64%, with mobile making up 66% of the companies overall revenue.
Expenses jumped 41% to 1.18 billion with capital expenditures of $482 million.
Company warned of elevated expenses in 2015, “major investment year”
For 2015 cost & expenses were expected to rise between 55% to 75% compared to 2014 and the company has reiterated that 2015 would be a “major investment year”. Such a jump could take expenses over the $2B level quarterly. The company expects to provide a more narrow range for expenses down the road.
Investments will be geared towards hiring talent (possibly acqui-hires?), existing and new products, advertising technology, and Internet.org.
Latest posts by Steve Vrionis (see all)
- Buffett on What Risks Could Take Down: Berkshire Hathaway Inc. - May 12, 2017 07:26 AM PDT
- Why the AIG Ruling Is No Drag for Federal National Mortgage Association(OTCMKTS:FNMA) & Federal Home Loan Mortgage Corp(OTCMKTS:FMCC) Investors - May 10, 2017 09:09 AM PDT
- Amazon.com, Inc.(NASDAQ:AMZN): Warren Buffett said you shouldn’t have missed this Jeff Bezos Interview - May 9, 2017 08:29 AM PDT