Facebook Reports Second Quarter 2014 Results MENLO PARK, Calif ...

Jul 23, 2014 - “We had a good second quarter,” said Mark Zuckerberg, Facebook .... about the financial performance of our business, enable comparison of ...
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Facebook Reports Second Quarter 2014 Results MENLO PARK, Calif. – July 23, 2014 – Facebook, Inc. (NASDAQ: FB) today reported financial results for the quarter ended June 30, 2014. “We had a good second quarter,” said Mark Zuckerberg, Facebook founder and CEO. “Our community has continued to grow, and we see a lot of opportunity ahead as we connect the rest of the world.” Second Quarter 2014 Financial Summary Three Months Ended June 30,

In millions, except percentages and per share amounts Revenue Income from Operations GAAP Non-GAAP Operating Margin GAAP Non-GAAP Net Income GAAP Non-GAAP Diluted Earnings per Share (EPS) GAAP Non-GAAP

2013

Six Months Ended June 30,

2014

2013

2014

$

1,813

$

2,910

$

3,271

$

5,412

$ $

562 794

$ $

1,390 1,712

$ $

935 1,357

$ $

2,464 3,085

31% 44%

48% 59%

29% 41%

46% 57%

$ $

333 488

$ $

791 1,091

$ $

552 800

$ $

1,433 1,976

$ $

0.13 0.19

$ $

0.30 0.42

$ $

0.22 0.32

$ $

0.55 0.76

Second Quarter 2014 Operational Highlights • • • •

Daily active users (DAUs) were 829 million on average for June 2014, an increase of 19% yearover-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-overyear. 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.

1

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, nonGAAP 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 app