Facebook Q4 Revenues: Beats US $3.77 bn Forecast, shows Mobile Strength
What: Facebook announced Q4 Earnings of US $3.85 billion, a 49% YoY increase beating forecasts for US$3.77 billion. Net income was of US$701 million and Revenue for the full year 2014 was US$12.47 billion, an increase of 58% YoY.
Why it matters: US$3.59 billion came from advertising, driven by a 99% increase in mobile ad revenue. Mobile nearly accounted for 69% of ad sales.In light of mobile growth, the social net will continue investing on this business, specially in markets like South America and Southeastern Asia where few people own desktop computers.
Facebook released its fourth-quarter earnings , going beyond expectations: US$701 million in net income, +34% vs the period last year, on revenues of US $3.85 billion. That's an increase of 49% year over year.The revenue number beat forecasts for US$3.77 billion and earnings at 54 cents a share were well ahead of the consensus estimate for 48 cents.
Revenues would have risen by 53% were it not for the effects of foreign a strong US dollar.If this continues during 2015, revenues could be affected as much as 5%.
Revenue for the full year 2014 was US$12.47 billion, an increase of 58% year over year.
The number of monthly active users(MAUs) was 1.39 billion , while analysts were expecting 1.38 billion (up from 1.35 billion Q3).The number of Daily active users (DAUs) saw a 18% year over year increased with 890 million on average for December 2014.
Mobile first company
Out of the Q4's US$3.85 billion in revenue, US$3.59 billion came from advertising. The revenue growth was driven by a 99% increase in mobile ad revenue. Mobile nearly accounted for 69% of ad sales, up from 53% at the end of 2013. This amounts to US$2.77 per mobile Facebook user. Revenue from payments and other fees was US$257 million, a 7% increase year over year.
In addition, the social net reported that Mobile DAUs were 745 million on average for December 2014, an increase of 34% year over year. While Mobile MAUs were 1.19 billion as of Dec. 31, 2014, an increase of 26% year over year.
The revenue growth was driven by a 99% increase in mobile ad revenue
Facebook has spent the past few years building a “mobile first” approach, with new products and services for mobile users as the target demographic. Part of the reason is that Facebook is planning to accumulate its next billion users through mobile devices, pulling in people from emerging markets like South America and Southeastern Asia where few people own desktop computers. Were to have a strong mobile user base it would translate in mobile business strategies.
“We got a lot done in 2014,” CEO Mark Zuckerberg says. “Our community continues to grow and we’re making progress towards connecting the world.” Facebook attracts more than 3 billion video views a day, he told analysts in a conference call.
The only thing that did not go up for Facebook upon its Q4 earnings is its share price in after-hours trading: up just 5 cents or 0.07 percent despite strong earnings and sales numbers. This may have to do with the fact that Facebook is still trading up 40 percent or so year over year.