>>> Facebook beats by $0.11, beats on revs

Facebook beats by $0.11, beats on revs
    • Daily active users (DAUs)- DAUs were 1.04 billion on average for December 2015, an increase of 17% year-over-year.
    • Mobile DAUs- Mobile DAUs were 934 million on average for December 2015, an increase of 25% year-over-year.
    • Monthly active users (MAUs)- MAUs were 1.59 billion as of December 31, 2015, an increase of 14% year-over-year.
    • Mobile MAUs- Mobile MAUs were 1.44 billion as of December 31, 2015, an increase of 21% year-over-year.
  • Mobile advertising revenue- Mobile advertising revenue represented approximately 80% of advertising revenue for the fourth quarter of 2015, up from 69% of advertising revenue in the fourth quarter of 2014.
  • Capital expenditures- Capital expenditures for the fourth quarter of 2015 were $692 million.


Facebook on Conference Call


    • Will be shipping Oculus controllers later this year; says this will be big moment for gaming community;
    • Shipping the Oculus headsets at end of March after opening up pre-orders this month.
    • Q4 ad revenue grew 57%; mobile ad revenue grew 81%.
    • FB and Instagram drove growth.
    • Saw strong growth across all verticals; seeing growth in International markets.
    Top 100 advertisers who advertised on Facebook also advertised on Instagram.
  • In Q4, the average price per ad increased 21% while total ad impressions increased 29% y/y; first quarter since Q3 2013 that total ad impressions increased on a y/y basis; driven by an increase in mobile ad impressions and was partially offset by decline in ad impressions delivered on personal computers consistent with the ongoing declines in PC usage.
  • In Q4 we also benefited to a lesser extent from increases in ad inventory from Instagram and the Audience Network.
  • Expect to continue to see FX headwinds, especially in 1H due to tougher comps.
  • Faces tougher comps given strong 2015 performance.
  • 2016 is another significant investment year for FB
    • Expect y/y expense growth rate to be GAAP 30-40%; Non-GAAP 45-55% y/y
    • CapEx to be in the range of $4.0-4.5 bln;
    • Building a new data center in Ireland