Facebook beats, stock soars

Mark Zuckerberg. Photo: Getty.

Facebook just reported its Q4 earnings!

The stock is up more than 8% and climbing on a beat on both the top and bottom line, as well as solid user growth.

Here are the most important numbers:

Revenue: $5.84 billion vs analyst expectations of $5.37 billion (and up 52% year-over-year)

Adjusted EPS: $0.79 vs $0.68 expected

Monthly active users: 1.59 billion, an increase of 21% year-over-year (vs expectations of 1.58 billion)

Daily active users: 1 .04 billion, an increase of 17% year-over-year (and in line with expectations)

Along with strong growth across the board on those key numbers, Facebook also proved that it continues to strengthen its mobile business, noting that that’s where it reels in 80% of ad revenue.

That’s up from 69% at this time last year (and from 78% last quarter). For even more perspective, that’s up from 23% in 2012.

That’s tied to the fact that more of Facebook’s users are accessing the social network from their smartphones. Mobile MAUs in December hit 1.44 billion (that’s up 21% year-over-year) and mobile DAUs hit 934 million (that’s up 25% year-over-year).

Here’s a look at how Facebook’s userbase has grown via BI Intelligence:

Here are the other important numbers:

  • Costs and expenses of $3.21 billion, which is up 21% year-over-year, with R&D at $1.31 billion. However, Facebook tightened its costs as a percentage of its revenue this quarter. The company’s operating expenses were down sequentially and year-on-year in all categories.
  • As usual, most of Facebook’s revenue came from advertising, but about 3.6%, or $204 million, came from payments and other fees. That’s down from 21% in Q4 2014, which Facebook has, in the past, attributed to a drop in revenue from gaming apps.
  • Free cash flow was $2.14 billion in Q4.
  • Most of Facebook’s revenue comes from North America and Europe (Facebook is killing it in the US), with only about 25% ($1.4 billion) coming from Asia-Pacific and the rest of the world. But those areas account for 65% of its monthly active users. The average revenue per user in those regions is still tiny, compared to in the US — $1.59 and $1.22, respectively, vs. $13.54 and $4.50 in the US and Europe.
  • Facebook recently made a big press push around its efforts in emerging markets, and how it’s optimising its content and, importantly, its advertising to work well in areas of the world. But it seems those efforts haven’t shifted the average revenue-per-user numbers yet.

Here’s a look at where Facebook’s revenue comes from geographically:

And as you can see Facebook still makes the most money per user on US members:

On the earnings call, Facebook CEO Mark Zuckerberg shared some other stats, like that people watched 100 million hours of video, more than one billion people used FB Groups in a single month, and that 80 million people use Facebook Lite, the service optimised for lower-bandwidth.

He also said that WhatsApp has nearly 1 billion MAUs and that the company plans to plans to roll out new ways to use it to communicate with businesses, like it has done with its other chat app, Messenger.

We’ll be following along the earnings call live, so refresh for the latest or click here.

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