Facebook beats, stock bumps

Mark ZuckerbergGetty / Win McNameeFacebook CEO Mark Zuckerberg

Facebook just reported its Q3 earnings, beating analyst expectations on both the top and bottom line.

Here are the most important numbers:

  • Revenue: $US4.5 billion vs analyst expectations of $US4.37 billion, up 41% year-over-year
  • Adjusted EPS: 57 cents versus analyst expectations of 52 cents
  • MAUs: 1.55 billion monthly active users versus 1.52 billion expected

The stock was up nearly 5% on the news, but has settled to around 3%.

Expenses are up 68% year-over-year, though the company has said that it plans to invest heavily this year.

As expected, Facebook saw an increase in the percentage of its revenue coming from mobile.

Here are the other important numbers:

  • 1.01 billion daily active users on average for September, which is up 17% year-over-year. 894 million people use Facebook on their phone every day.
  • Costs and expenses of $US3.04 billion, which is up 68% year-over-year, with R&D more than doubling year-over-year to $US1.27 billion. That’s also up significantly from $US2.76 billion in costs and expenses last quarter.
  • The adjusted operating margin was 54%, down from 57% year-over-year
  • About 78% of advertising revenue came from mobile, up from 66% at this time last year and 76% last quarter.
  • As usual, most of Facebook’s revenue came from advertising, but about $US202 million came from payments and other fees
  • Free cash flow was $US1.41 billion in the third quarter

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

And you can see that Facebook also makes much more per user in the United States than it used to, likely attributable to the roll out of video and Instagram ads:

Facebook’s stock has traded at new all-time highs in recent weeks and shares are up roughly 25% since mid-August.

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