FB Facebook Reports Second Quarter 2014 Results
BY PR Newswire
— 4:05 PM ET 07/23/2014
Second Quarter 2014 Financial Summary
| Three Months Ended June 30,
|
| Six Months Ended June 30,
| In millions, except percentages and per share amounts
| 2013
|
| 2014
|
| 2013
|
| 2014
| Revenue
| $ 1,813
|
| $ 2,910
|
| $ 3,271
|
| $ 5,412
| Income from Operations
|
|
|
|
|
|
|
| GAAP
| $ 562
|
| $ 1,390
|
| $ 935
|
| $ 2,464
| Non-GAAP
| $ 794
|
| $ 1,712
|
| $ 1,357
|
| $ 3,085
| Operating Margin
|
|
|
|
|
|
|
| GAAP
| 31 %
|
| 48 %
|
| 29 %
|
| 46 %
| Non-GAAP
| 44 %
|
| 59 %
|
| 41 %
|
| 57 %
| Net Income
|
|
|
|
|
|
|
| GAAP
| $ 333
|
| $ 791
|
| $ 552
|
| $ 1,433
| Non-GAAP
| $ 488
|
| $ 1,091
|
| $ 800
|
| $ 1,976
| Diluted Earnings per Share (EPS)
|
|
|
|
|
|
|
| GAAP
| $ 0.13
|
| $ 0.30
|
| $ 0.22
|
| $ 0.55
| Non-GAAP
| $ 0.19
|
| $ 0.42
|
| $ 0.32
|
| $ 0.76
|
Second Quarter 2014 Operational Highlights
Daily active users (DAUs) were 829 million on average for June 2014, an increase of 19% year-over-year. Mobile DAUs were 654 million on average for June 2014, an increase of 39% year-over-year. Monthly active users (MAUs) were 1.32 billion as of June 30, 2014, an increase of 14% year-over-year. Mobile MAUs were 1.07 billion as of June 30, 2014, an increase of 31% year-over-year. Second Quarter 2014 Financial Highlights
Revenue – Revenue for the second quarter of 2014 totaled $2.91 billion, an increase of 61%, compared with $1.81 billion in the second quarter of 2013. Excluding the impact of year-over-year changes in foreign exchange rates, revenue would have increased by 59%.
Revenue from advertising was $2.68 billion, a 67% increase from the same quarter last year. Excluding the impact of year-over-year changes in foreign exchange rates, revenue from advertising would have increased by 65%. Mobile advertising revenue represented approximately 62% of advertising revenue for the second quarter of 2014, up from approximately 41% of advertising revenue in the second quarter of 2013. Payments and other fees revenue was $234 million, a 9% increase from the same quarter last year. Costs and expenses – GAAP costs and expenses for the second quarter of 2014 were $1.52 billion, an increase of 22% from the second quarter of 2013. Excluding share-based compensation and related payroll tax expenses, non-GAAP costs and expenses were $1.2 billion in the second quarter of 2014, up 18% compared to $1.02 billion for the second quarter of 2013.
Income from operations – For the second quarter of 2014, GAAP income from operations was $1.39 billion, up 147% compared to $562 million in the second quarter of 2013. Excluding share-based compensation and related payroll tax expenses, non-GAAP income from operations for the second quarter of 2014 was $1.71 billion, up 116% compared to $794 million for the second quarter of 2013.
Operating margin – GAAP operating margin was 48% for the second quarter of 2014, compared to 31% in the second quarter of 2013. Excluding share-based compensation and related payroll tax expenses, non-GAAP operating margin was 59% for the second quarter of 2014, compared to 44% for the second quarter of 2013.
Provision for income taxes – GAAP income tax expense for the second quarter of 2014 was $595 million, representing a 43% effective tax rate. Excluding share-based compensation and related payroll tax expenses, the non-GAAP effective tax rate would have been approximately 36%.
Net income and EPS – For the second quarter of 2014, GAAP net income was $791 million, up 138% compared to $333 million for the second quarter of 2013. Excluding share-based compensation and related payroll tax expenses and income tax adjustments, non-GAAP net income for the second quarter of 2014 was $1.09 billion, up 124% compared to $488 million for the second quarter of 2013. GAAP diluted EPS was $0.30 in the second quarter of 2014, up 131% compared to $0.13 in the second quarter of 2013. Excluding share-based compensation and related payroll tax expenses and income tax adjustments, non-GAAP diluted EPS for the second quarter of 2014 was $0.42, up 121% compared to $0.19 in the second quarter of 2013.
Capital expenditures – Capital expenditures for the second quarter of 2014 were $469 million.
Cash and marketable securities – Cash and marketable securities were $13.96 billion at the end of the second quarter of 2014.
Free cash flow – Free cash flow for the second quarter of 2014 was $872 million |
