Facebook: Still Expanding its Message Around the World
Facebook’s (NASDAQ:FB) timeline since going public has many blemishes on it. Between its initial debut on the Nasdaq and well publicized insider selling, the social media giant has experienced enough obstacles to last a lifetime. Shares of the company declined after reporting its latest quarterly results, but Facebook continues to grow its social presence.
After Wednesday’s closing bell, the world’s largest social media company released earnings for only the third time since going public last May. Facebook posted a profit of $64 million (3 cents per share), compared to $302 million (14 cents per share) a year earlier. Excluding share-based compensation and tax items, earnings came in at 17 cents per share, topping estimates by 2 cents.
Although the bottom-line took a 79 percent hit on a GAAP basis, Facebook is still growing its amount of users.
As the chart above shows, Facebook attracted 1.056 billion monthly active users, as of the end of December. This represents a 4.9 percent increase from the prior quarter, and a 25 percent jump from a year earlier. Last October, Mark Zuckerberg, co-founder and chief executive officer, announced that Facebook reached a total of 1 billion active users worldwide.
Daily usage is also on the rise…
The number of daily active users were 618 million on average for December 2012, a 28 percent increase year-over-year. In comparison, Facebook only had 327 million daily active users two years ago.
How is mobile performing…
Wall Street has been keeping a close eye on Facebook’s mobile effort, and the status is improving. In the fourth quarter, the number of mobile monthly active users reached 680 million, up 12.6 percent from the previous quarter and 57 percent year-over-year. In fact, mobile daily active users exceeded web daily active users for the first time in company history during the fourth quarter.
Zuckerberg has also clearly changed his status from when he downplayed Facebook as a public company. In the quarterly press release, he says, “In 2012, we connected over a billion people and became a mobile company. We enter 2013 with good momentum and will continue to invest to achieve our mission and become a stronger, more valuable company.”
Following the earnings release, shares of Facebook traded lower. However, support is being seen near $29 and Facebook has been outperforming other popular technology names in recent months. Over the past three months, Facebook shares have climbed more than 40 percent higher. In comparison, LinkedIn (NYSE:LNKD) and Zynga (NASDAQ:ZNGA) have gained 15 percent and 13 percent, respectively. Meanwhile, Apple (NASDAQ:AAPL) and Yelp (NYSE:YELP) have declined by double digits.
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