Facebook Inc (FB): The Good and The Bad

Share This Article
May 3, 2013 10:36am NASDAQ:SOCL

good news bad newsChris Preston: Facebook Inc (NASDAQ:FB) beat earnings after the bell yesterday, giving the social network’s stock a nice 4% boost in trading today.

But that doesn’t tell the whole story. While many of the numbers in Facebook’s earnings report were encouraging, there were a few red flags.

Here are some of the key numbers from Facebook’s first-quarter earnings – both the good and the bad:

The Good

  • Mobile. Mark Zuckerberg has been working feverishly to improve Facebook’s mobile presence, and his efforts appear to be working. Mobile-ad sales increased 22% from the previous quarter and now comprise 30% of all its advertising revenue. A year ago, Facebook’s mobile business was almost nonexistent.
  • Revenue and net income growth. Facebook’s revenue was up 38% from a year ago and net income improved 6.8% from the first quarter in 2012.
  • User numbers up. More people are using Facebook than ever before. Monthly user numbers climbed 23% year-over-year to 1.1 billion, while daily users increased 26% to 665 million.

The Bad

  • Flat earnings. Non-GAAP earnings of 12 cents a share were in line with what they were a year ago.
  • More expenditures. First-quarter costs of $1.08 billion were 60% higher than a year ago. That trend should continue throughout the year – the company expects to spend 50% more in 2013 than it did in 2012.
  • Less cash. Cash flow from operations dipped to $441 million from $681 million a year ago. Total cash was also down a tad, to $9.47 billion from $9.63 billion.

This article is brought to you courtesy of Chris Preston from Wyatt Research.

Related: Global X Social Media ETF (NASDAQ:SOCL).

Read Next

Get Free Updates

Join over 50,000 investors who get the latest news from ETFDailyNews.com!

Most Popular

From Our Partners

Explore More from ETFDailyNews.com

Free Daily Newsletter

Get daily ETF insights from our market experts. Never miss another important market development again!

ETFDailyNews.com respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories