Facebook’s Earnings in 4Q15: Facebook Shares Rose by 12%



Facebook just outperformed estimates for 4Q15

Social media company Facebook (FB) declared its earnings for 4Q15 on January 27, 2016. The market reaction remained positive on its disclosure, where investors drove the price up by 12.12% in after-hours trading. Facebook rivals LinkedIn (LNKD) and Twitter (TWTR) will disclose their financials for the same quarter on February 4th and February 10th.

Facebook beat analyst estimates for both revenues and EPS (earnings per share). The company reported revenues of $5.8 billion, compared to estimates of nearly $5.4 billion. Likewise, Facebook’s non-GAAP (generally accepted accounting principles) EPS came in at $0.79, compared to estimates of $0.68.

Article continues below advertisement

Earnings highlights from Facebook’s 4Q15

On December 2015, the company’s DAUs (daily active users) stood at just over 1 billion on average, which represents an increase of 17% YoY (year-over-year) and was in line with expectations. Similarly, Facebook’s MAUs (monthly active users) came in at nearly 1.6 billion, which represents an increase of 14% YoY.

The company has reported mobile DAUs of 934 million on average, which represents an increase of 25% YoY and constitutes around 90.1% of total DAU’s as on December 2015. Similarly, mobile MAUs stood at more than 1.4 billion, an increase of 21% YoY. Moreover, mobile advertising revenues constitute 80% of the company’s total advertising revenues for the quarter, which represents an increase of 69% YoY.

What’s to come in this series

In this series, we’ll analyze Facebook’s revenue drivers and financials for 4Q15 and wrap up with technical analysis and analyst recommendations.

Please note that Facebook (FB) and Yahoo (YHOO) are part of the PowerShares QQQ ETF (QQQ), and the two companies account for 4.3% and 0.62%, respectively, of the ETF.

Now let’s dive right into Facebook’s 4Q15 growth in mobile users.


More From Market Realist