A strong quarter from the world's largest social networking giant was expected, and Facebook Inc. (Nasdaq: FB) delivered. Profit, revenue, and user count numbers were all solidly higher.
After finishing Wednesday's regular session up 2.92% at $71.29, FB stock rose another 3.80% to $74.04 afterhours, sailing past FB's all-time high watermark of $72.59.
"They have really done a very good job in bridging data gap between the mobile and desktop," Oppenheimer & Co.'s Jason Helfstein told CNBC Wednesday, ahead of the earnings release. "So they learn about you on the desktop and use that data when you go on your mobile phone. It's a seamless experience for advertisers."
Following are key highlights from Facebook's second-quarter report:
- The social networking giant reported Q2 earnings per share of $0.42. That handily beat the $0.32 analysts had expected, as well as whisper EPS numbers of $0.36. It was also more than double EPS of $0.19 posted in the same quarter a year ago
- Revenue also beat, coming in at $2.9 billion, ahead of the $2.81 billion Wall Street forecast.
- Daily user count was 829 million, a tad better than the 828 million expected. That was, however, up comfortably from 802 million in the prior quarter and is good for a 19% year-over-year (YOY) increase.
- Mobile daily user count came in at 654 million, up from 609 million in Q1 and an increase of 39% YOY.
- The mobile monthly user tally rose to 1.32 million, a YOY increase of 14%. Facebook's mobile user count crossed the one-billion mark in Q1, a 34% year-over-year growth.
- Revenue from advertising was $2.68 billion, a 67% increase from the same quarter last year. Excluding the impact of year-over-year changes in foreign exchange rates, revenue from advertising would have increased by 65%.
- Mobile advertising revenue represented approximately 62% of advertising revenue for the second quarter of 2014, up from approximately 41% of advertising revenue in the second quarter of 2013.
- Payments and other fees revenue was $234 million, a 9% increase from the same quarter last year.
- Cash and marketable securities were $13.96 billion at the end of Q2.
Heading into Wednesday's earning release, powered by strong earnings growth, FB shares were up a meteoric 177% from their 52-week intraday low of $25.97 hit exactly one year ago on July 23, 2013.
Year to date, FB shares have rallied 30.47% to $71.30, handily beating the broad-based S&P 500's 7.3% gain, as well as the tech-heavy Nasdaq Composite's 15.9% rise.
Of 43 analysts who cover the stock, 34 rate shares "Buy," five an "Overweight" and four a "Hold." There are no "Underweights" or "Sells." The median 12-month price target is $80, with $90 named as the stock's high watermark, according to the Wall Street Journal.
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- Wall Street Journal: Facebook: Earnings, Actuals, and Estimates