<p><pre><code> Second Quarter 2012 Financial Summary
In millions, except percentages and per share amounts Q2'12 Q2'11
Revenue $ 1,184 $ 895
Income (Loss) from Operations
GAAP $ (743) $ 407
Non-GAAP $ 515 $ 477
Operating Margin
GAAP (63%) 45%
Non-GAAP 43% 53%
Net Income (Loss)
GAAP $ (157) $ 240
Non-GAAP $ 295 $ 285
Diluted Earnings (Loss) per Share (EPS)
GAAP $ (0.08) $ 0.11
Non-GAAP $ 0.12 $ 0.12</code></pre>
Monthly active users (MAUs) were 955 million as of June 30, 2012, an increase of 29% year-over-year.<p>Daily active users (DAUs) were 552 million on average for June 2012, an increase of 32% year-over-year.<p>Mobile MAUs were 543 million as of June 30, 2012, an increase of 67% year-over-year.<p>Stock down c.10% after hours so far. That's after an 8.5% fall already today.
This was a really important number. No matter what happened, FB had to at least come out and match the streets expectations of earnings per share (which they did). After the ZNGA plummet of 40%~ Facebook took the ripple of about 5-7%.<p>Since IPO, ZNGA is down 70% <a href="http://i.imgur.com/kiXss.png" rel="nofollow">http://i.imgur.com/kiXss.png</a> (courtesy of henryw in another thread) and despite having 1.2B "in the bank" I don't see much life left in them. Not when you come out blaming shortfallings on "UI changes". Total BS. (Not to mention the backlash Pincus is going to get on taking $200M)<p>GRPN also down 50% since their IPO. (The only notable increase is LNKD ).<p>FB need to come out and show that they aren't dependent on ZNGA's earnings (which they aren't). Facebook's worth is their "market", which we know is rapidly approaching 1B~, and Zynga's market cap seems to wane based entirely on their daily active users (DAU) - Take a look at their P/E, it's ridiculous. Zynga's user base is comprised entirely of casual gamers, built on a platform which is looking for long term growth and isn't afraid to make UI changes which they know will damage a company who accounted for 15% of their previous quarters earnings...<p>Anyway, this was clearly an important announcement, if I had the money, I would happily buy FB.
Interesting to see that Google's Y/Y revenue growth beats Facebook's for Q2 2012.<p>(Edit : Google's Y/Y revenue growth was 35% and Facebook's 32%. In contrast, Google's market cap is about two times that of $FB)
> Facebook now has independent ROI data from more than 60 advertising campaigns using a variety of third-party methodologies like panels and marketing mix models. The results show that 70% of campaigns resulted in a return on ad spend of 3x or better, and 49% of campaigns showed a return on ad spend of 5x or better.<p>This has pretty much been my experience in CPA and CPS on FB for 3+ years (in the 5x bracket most of the time). I'm glad to see this data finally backed up by Facebook.
RE: The stock being down ~10% in after-hours.<p>I think there's a real divide between the people who use Facebook, for whom it is (often) a serious part of their social life and, those who comment on FB in the media and invest in FB on the public market.<p>Being 19 Facebook is a critical part of finding out what's going on, organising events and, keeping in touch with everyone (whether I see them every day or once a year). I'm not unique in this, it's true for all my friends and pretty much anyone I meet, of my age, around the (western?) world.<p>Obviously, the market thinks FB is over-valued; I'm not commenting on whether it is or isn't. I'm just interested at what the market might value FB at if the people buying its stock used it as much and in the same way as younger generations. (As far as I see it, it's like a single private company owning the whole "phone system" for young people. What would that be valued at?)
It looks like most of the expenses (1.3 billion of 1.93 billion) were from "$1.3 billion of share-based compensation [RSU's] and related payroll tax expenses." If it weren't for that, then it doesn't look that bad. P/E is still in the 60's though.