Losses of $ 157 million and another 5 facts about the first financial report Facebook
The first post-IPO financial report disappointed investors Facebook: the company's shares have overcome historic low. Mark Zuckerberg claims that everything will be fine
Facebook has released its first financial report of the status of a public company. Mark Zuckerberg had to be rehabilitated in the eyes of investors for the IPO drama with resonance and the subsequent collapse of prices. As a result, the excitement around the quarterly results of the social network is not too inferior to its hype vpreddverii placement.
Once again, the audience was left disappointed. In April-June revenues Facebook grew quite comfortable 32% over the same period last year to $ 1.18 billion, that is even slightly above analysts' expectations. However, profit social network could not fix and it reported a net loss of $ 157 million company's stock immediately collapsed by more than 10%: at some point, even the quotes struck a historic low and dropped to $ 23.75 (30% below the IPO).
Investors are still skeptical attitude to the possibilities of the world's largest social network to cope with the migration of its users with personal computers to mobile devices, where Facebook has not yet learned how to display advertisements. Of the 955 million active users Facebook their smartphones and tablets to access the site use is already 543 million people. All of them do not give Zuckerberg to earn money. Even in the most effective advertising for the past three months, many have questioned.
Allay fears during a conference call tried to CFO David Ebersman, its chief operating officer Sheryl Sandberg, and Mark Zuckerberg himself. Here are the main points of their performances:
Profit is actually growing
Administrative expenses of the company (taxes, the redemption of shares from employees etc.) in the last quarter have increased significantly due to the need to serve the largest in the history of the technology industry IPO. Excluding these huge profits Facebook compensation would be $ 295 million - is 44% more profit for the first quarter and even slightly better performance record of the fourth quarter last year. It also justifies the hopes of Wall Street.
Advertising is also growing
In April-June revenues Facebook advertising rose 28% to $ 992 million Special attention a trio of top-managers of the company paid a "sponsorship stories" - recently presented the format of text ads that will appear in the news directly to the user. "Sponsorship of history" perfect fit in the screen smartphone and the theory is the key to monetizing the mobile network. According to Zuckerberg and Sandberg, a new format feels just fine. Already in the last quarter, "sponsored stories" accounted for almost 10% of all advertising revenue. However, they proved to be more effective than traditional banner ads in the desktop version of the site.
The share of gaming revenue in the fall
Facebook has repeatedly stated a desire to gradually increase the share of social contributions from gaming revenue structure. This quarter, however, for the first time in a long time it has fallen relative to the previous reporting period - from 18% to 16%. Again blame smartphones. Games on smartphones are becoming more popular, but Facebook has not yet begun to take on the mobile gaming payments. Over time, this must change, Zuckerberg assured. In his words, Facebook has already proved its potential gaming platform, and "mobile boom" will not change this situation.
Facebook will not be a smartphone
Remember yesterday's news about Facebook and HTC plans already in the middle of next year to put on the shelves of its own smartphone social networking? Zuckerberg claims that this is not true. "We are the most popular application on absolutely all mobile platforms. All that we want - is to increase the activity of users. Therefore, our goal is to better integrate social networking services in the functional mobile operating systems. That is why we are so looking forward to working with Apple. I mean, that let your phone do not need us "- said Zuckerberg. The same is said Facebook founder and two years ago, when information about the upcoming smartphone under the name of his company was first leaked to the press. Rumors have since become only more.
Future products
"You can consider us advertising companies, but we think of ourselves differently," - said Sandberg. Any activity on the Internet becomes more social, and Facebook provides the social infrastructure for a wide variety of businesses. While Facebook earned solely on contributions from the producers of games, but gradually it spread to the music, video, and, most importantly, e-commerce. "Our vision of the capabilities of the platform goes far beyond most people's perspectives" - added Zuckerberg - "Once you listen to music in your car via Facebook»
So Facebook is the future of leadership solely in light colors. Then what are all unhappy? The attractiveness of Facebook is always sufficiently explained by a rare combination of strong financial performance and the feeling that the company has not sold a small part of its features. Investors believe in the ability of the team Facebook will eventually unlock the potential of social networks. This belief has allowed the company to record an IPO and it continues to appeal to it, Mark Zuckerberg. But, as noted by the U.S. Forbes, while he actually says, "the ways in which we will earn tomorrow, will be completely different from the ways that we make today." At least here there is cause for excitement.
The first post-IPO financial report disappointed investors Facebook: the company's shares have overcome historic low. Mark Zuckerberg claims that everything will be fine
Facebook has released its first financial report of the status of a public company. Mark Zuckerberg had to be rehabilitated in the eyes of investors for the IPO drama with resonance and the subsequent collapse of prices. As a result, the excitement around the quarterly results of the social network is not too inferior to its hype vpreddverii placement.
Once again, the audience was left disappointed. In April-June revenues Facebook grew quite comfortable 32% over the same period last year to $ 1.18 billion, that is even slightly above analysts' expectations. However, profit social network could not fix and it reported a net loss of $ 157 million company's stock immediately collapsed by more than 10%: at some point, even the quotes struck a historic low and dropped to $ 23.75 (30% below the IPO).
Investors are still skeptical attitude to the possibilities of the world's largest social network to cope with the migration of its users with personal computers to mobile devices, where Facebook has not yet learned how to display advertisements. Of the 955 million active users Facebook their smartphones and tablets to access the site use is already 543 million people. All of them do not give Zuckerberg to earn money. Even in the most effective advertising for the past three months, many have questioned.
Allay fears during a conference call tried to CFO David Ebersman, its chief operating officer Sheryl Sandberg, and Mark Zuckerberg himself. Here are the main points of their performances:
Profit is actually growing
Administrative expenses of the company (taxes, the redemption of shares from employees etc.) in the last quarter have increased significantly due to the need to serve the largest in the history of the technology industry IPO. Excluding these huge profits Facebook compensation would be $ 295 million - is 44% more profit for the first quarter and even slightly better performance record of the fourth quarter last year. It also justifies the hopes of Wall Street.
Advertising is also growing
In April-June revenues Facebook advertising rose 28% to $ 992 million Special attention a trio of top-managers of the company paid a "sponsorship stories" - recently presented the format of text ads that will appear in the news directly to the user. "Sponsorship of history" perfect fit in the screen smartphone and the theory is the key to monetizing the mobile network. According to Zuckerberg and Sandberg, a new format feels just fine. Already in the last quarter, "sponsored stories" accounted for almost 10% of all advertising revenue. However, they proved to be more effective than traditional banner ads in the desktop version of the site.
The share of gaming revenue in the fall
Facebook has repeatedly stated a desire to gradually increase the share of social contributions from gaming revenue structure. This quarter, however, for the first time in a long time it has fallen relative to the previous reporting period - from 18% to 16%. Again blame smartphones. Games on smartphones are becoming more popular, but Facebook has not yet begun to take on the mobile gaming payments. Over time, this must change, Zuckerberg assured. In his words, Facebook has already proved its potential gaming platform, and "mobile boom" will not change this situation.
Facebook will not be a smartphone
Remember yesterday's news about Facebook and HTC plans already in the middle of next year to put on the shelves of its own smartphone social networking? Zuckerberg claims that this is not true. "We are the most popular application on absolutely all mobile platforms. All that we want - is to increase the activity of users. Therefore, our goal is to better integrate social networking services in the functional mobile operating systems. That is why we are so looking forward to working with Apple. I mean, that let your phone do not need us "- said Zuckerberg. The same is said Facebook founder and two years ago, when information about the upcoming smartphone under the name of his company was first leaked to the press. Rumors have since become only more.
Future products
"You can consider us advertising companies, but we think of ourselves differently," - said Sandberg. Any activity on the Internet becomes more social, and Facebook provides the social infrastructure for a wide variety of businesses. While Facebook earned solely on contributions from the producers of games, but gradually it spread to the music, video, and, most importantly, e-commerce. "Our vision of the capabilities of the platform goes far beyond most people's perspectives" - added Zuckerberg - "Once you listen to music in your car via Facebook»
So Facebook is the future of leadership solely in light colors. Then what are all unhappy? The attractiveness of Facebook is always sufficiently explained by a rare combination of strong financial performance and the feeling that the company has not sold a small part of its features. Investors believe in the ability of the team Facebook will eventually unlock the potential of social networks. This belief has allowed the company to record an IPO and it continues to appeal to it, Mark Zuckerberg. But, as noted by the U.S. Forbes, while he actually says, "the ways in which we will earn tomorrow, will be completely different from the ways that we make today." At least here there is cause for excitement.
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