Facebook Earnings Show Solid User, Ad Growth

Technology

Published: January 27, 2016 4:39 pm

Last Updated: January 13, 2020 2:28 pm

Facebook Inc. (NASDAQ: FB) released its fourth-quarter and full-year 2015 earnings results after markets closed on Wednesday. For the quarter, the social media company posted adjusted diluted earnings per share (EPS) of $0.79 on revenues of $5.84 billion. In the same period a year ago, the company reported EPS of $0.54 on revenues of $3.85 billion. Fourth-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.68 and $5.37 billion in revenues.

For the full year, EPS totaled $2.28 on revenues of $17.93 billion compared with 2014 EPS of $1.77 and revenues of $12.47 billion. Analysts were looking for EPS of $2.17 and revenues of $17.45 billion.

The number of daily active users rose to 1.04 billion in December and the number of mobile daily active users rose to 934 million. December’s monthly active user total rose 14% to 1.59 billion and the monthly mobile active user count rose 21% to 1.44 billion.

Facebook CEO Mark Zuckerberg said:

2015 was a great year for Facebook. Our community continued to grow and our business is thriving. We continue to invest in better serving our community, building our business, and connecting the world.

Mobile advertising revenue represented approximately 80% of advertising revenue for the fourth quarter of 2015, up from 69% of advertising revenue year-ago quarter.

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The company has also added more than $7 billion in cash, cash equivalents, and marketable securities to its balance sheet in the past 12 months.

Facebook’s shares closed down nearly 3% at $94.45 on Wednesday, against a 52-week trading range of $72.00 to $110.65,. The reaction in the after-hours has shares trading up about 7 at $101.30. Thomson Reuters had a consensus price target of $125.02 before the results.