Bidness ETC - Facebook Inc (NASDAQ:FB) Outshines first quarter FY15

Facebook reported its quarterly earnings on April 22 and reported $3.42 billion in revenue and 42 cents of earnings per share.

Facebook Inc (NASDAQ:FB) announced its first quarter fiscal year 2015 earnings on Wednesday April 22. The social media giant reported $3.54 billion of revenues slightly less than analyst’s expectation of $3.56. The company earned $0.42 per share on non-GAAP basis barely surpassing projections.

Like other multinational companies, strengthening dollar hurt Facebook first quarter earnings as well. Facebook Inc said, last quarter increase in sales by 42% in contrast with prior year quarter would have been 49% without the foreign exchange volatility. The major chunk of Facebook revenue comes from advertising, which increased by 46% and reach $3.32 billion during the quarter.

Last year, mobile ads generate around 59% of revenue for Facebook Inc, however in first quarter it increased to 73%.other fees and payments of Facebook accounted for $226 million decreased by 5% compared with prior year quarter.

On the other hand, social media giant’s expenses continued to increase. In the previous quarter, its overhead expenses increased by 87%, while in 1QFY15 it soared by 83% and reached $2.61 billion.

As in fourth quarter 2014, Chief Financial Officer of Facebook Inc, Dave Wehner said that the shareholders should expect more spending n the coming quarter. However, an increase in expenses did impact operating income and margin but was down compared to a prior year quarter.

Although, Facebook Inc is the biggest social media company in the world, it is still mounting its user base at an extraordinary rate. The company added almost 50 million MAUs in fourth quarter, which has now reached 1.44 billion across the world. Twitter which is around one fifth of Facebook size only managed to add 4 million MAUs in the last quarter.

Facebook Inc is not only growing itself, but its properties such as Facebook Inc is also growing and added approximately 100 million users alone this year and now reached more than 800 million, while Instagram and Facebook messenger now have 300 million and 500 million monthly active users.

Facebook Inc stock is up by 1.21% and reached $84.63 at market close on Wednesday April 22. The company has $234.05 billion of market capitalization and 79.24 price to earnings ratio. The social media site has 52 week low and high of $54.66 and $86.07, respectively.