Earnings Review and Free Research Report: Facebook’s Subscriber Base Growth Boosted Q2 Results

Research Desk Line-up: Twitter Post Earnings Coverage

LONDON, UK / ACCESSWIRE / July 31, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Facebook, Inc. (NASDAQ: FB), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=FB, following the Company’s release of its financial results on July 26, 2017, for the second quarter fiscal 2017 (Q2 FY17). The Menlo Park, California-based Company’s quarterly total revenues surged 45% y-o-y and its diluted EPS rallied 69% y-o-y in the reported quarter; beating analysts’ estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Internet Information Providers industry. Pro-TD has currently selected Twitter, Inc. (NYSE: TWTR) for due-diligence and potential coverage as the Company announced on July 27, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on Twitter when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on FB; also brushing on TWTR. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=FB

http://protraderdaily.com/optin/?symbol=TWTR

Earnings Reviewed

During Q2 FY17, Facebook reported total revenue of $9.32 billion which came in above the $6.44 billion recorded at the end of Q2 FY16. The Company’s quarterly total revenue numbers outperformed Wall Street’s expectations of $9.17 billion. Furthermore, advertising revenue surged 47% to $9.16 billion in Q2 FY17 from $6.24 billion recorded in Q2 FY16. However, payments and other fees fell 20% y-o-y to $157 million in Q2 FY17.

The social networking Company’s net income came in at $3.89 billion, or $1.32 per diluted common share, in Q2 FY17 compared to $2.28 billion, or $0.78 per diluted common share, in the prior year’s same quarter. Meanwhile, market analysts had expected the Company to report EPS of $1.13 per diluted share for the reported quarter.

Operating Metrics

For Q2 FY17, Facebook’s income from operations came in at $4.40 billion, or 47% of total revenues compared to $2.73 billion, or 42% of total revenues in the year ago same period. The Company’s income before provision for income taxes increased to $4.49 billion in Q2 FY17, from $2.75 billion in the previous year’s comparable quarter.

Facebook’s monthly active users (MAUs) grew to 2.01 billion in Q2 FY17 from 1.71 billion in Q2 FY16. Daily active users (DAUs) increased 1.32 billion in Q2 FY17 from 1.13 billion in the prior year’s comparable quarter.

Facebook’s average revenue per user (ARPU) stood at $4.73 in Q2 FY17, up from $3.82 in last year’s same quarter. In the reported period, advertising ARPU was $4.65, while payments and other fees ARPU came in at $0.08.

Geographical Contribution

During Q2 FY17, Facebook reported DAUs of 183 million in the US & Canada region and MAUs for the reported quarter were 236 million. Furthermore, Q2 FY17 ARPU from the region stood at $19.38 versus $14.34 in Q2 FY16.

In the quarter ended June 30, 2017, DAUs from European region increased to 271 million, while MAU’s grew to 360 million. In Q2 FY17, ARPU from the region came in at $6.28 versus $4.72 in the year ago comparable period.

Facebook had 453 million of DAUs and 756 million of MAUs in the Asia/Pacific region. ARPU from the region increased to $2.13 in Q2 FY17 from $1.77 in the prior year’s comparable quarter.

There are 419 million DAUs for Facebook from rest of the world, while MAUs from the region stood at 654 million. The region’s ARPU for Q2 FY17 was $1.48 which came in above the $1.13 recorded in the last year’s corresponding quarter.

Cash Flow & Balance Sheet

During the three-quarters ended on June 30, 2017, Facebook generated $5.36 billion of cash from operations compared to $3.67 billion in the previous year’s comparable period. In Q2 FY17, free cash flow came in at $3.92 billion compared to $2.67 billion in prior year’s same quarter. The Company had and cash equivalents and marketable securities balance of $6.25 billion as on June 30, 2017, versus $8.90 billion as on December 31, 2016.

Stock Performance

On Friday, July 28, 2017, the stock closed the trading session at $172.45, rising 1.18% from its previous closing price of $170.44. A total volume of 24.21 million shares have exchanged hands, which was higher than the 3-month average volume of 19.35 million shares. Facebook’s stock price soared 14.78% in the last three months, 30.47% in the past six months, and 37.96% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have skyrocketed 49.89%. The stock is trading at a PE ratio of 37.46. At Friday’s closing price, the stock’s net capitalization stands at $493.97 billion.

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