MENLO PARK, Calif.,
July 23, 2014 /PRNewswire/ -- Facebook, Inc. (NASDAQ: FB)
today reported financial results for the quarter ended
June 30, 2014.
"We had a good second quarter," said Mark Zuckerberg, Facebook founder and CEO. "Our
community has continued to grow, and we see a lot of opportunity
ahead as we connect the rest of the world."
Second Quarter 2014 Financial Summary
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
In millions,
except percentages and per share amounts
|
2013
|
|
2014
|
|
2013
|
|
2014
|
Revenue
|
$ 1,813
|
|
$ 2,910
|
|
$ 3,271
|
|
$ 5,412
|
Income from
Operations
|
|
|
|
|
|
|
|
GAAP
|
$ 562
|
|
$ 1,390
|
|
$ 935
|
|
$ 2,464
|
Non-GAAP
|
$ 794
|
|
$ 1,712
|
|
$ 1,357
|
|
$ 3,085
|
Operating
Margin
|
|
|
|
|
|
|
|
GAAP
|
31 %
|
|
48 %
|
|
29 %
|
|
46 %
|
Non-GAAP
|
44 %
|
|
59 %
|
|
41 %
|
|
57 %
|
Net
Income
|
|
|
|
|
|
|
|
GAAP
|
$ 333
|
|
$ 791
|
|
$ 552
|
|
$ 1,433
|
Non-GAAP
|
$ 488
|
|
$ 1,091
|
|
$ 800
|
|
$ 1,976
|
Diluted Earnings
per Share (EPS)
|
|
|
|
|
|
|
|
GAAP
|
$ 0.13
|
|
$ 0.30
|
|
$ 0.22
|
|
$ 0.55
|
Non-GAAP
|
$ 0.19
|
|
$ 0.42
|
|
$ 0.32
|
|
$ 0.76
|
Second Quarter 2014 Operational Highlights
- Daily active users (DAUs) were 829 million on average for
June 2014, an increase of 19%
year-over-year.
- Mobile DAUs were 654 million on average for June 2014, an increase of 39%
year-over-year.
- Monthly active users (MAUs) were 1.32 billion as of
June 30, 2014, an increase of 14% year-over-year.
- Mobile MAUs were 1.07 billion as of June 30, 2014, an
increase of 31% year-over-year.
Second Quarter 2014 Financial Highlights
Revenue – Revenue for the second quarter of 2014 totaled
$2.91 billion, an increase of 61%,
compared with $1.81 billion in the
second quarter of 2013. Excluding the impact of year-over-year
changes in foreign exchange rates, revenue would have increased by
59%.
- Revenue from advertising was $2.68
billion, a 67% increase from the same quarter last year.
Excluding the impact of year-over-year changes in foreign exchange
rates, revenue from advertising would have increased by 65%.
- Mobile advertising revenue represented approximately 62% of
advertising revenue for the second quarter of 2014, up from
approximately 41% of advertising revenue in the second quarter of
2013.
- Payments and other fees revenue was $234
million, a 9% increase from the same quarter last year.
Costs and expenses – GAAP costs and expenses for the
second quarter of 2014 were $1.52
billion, an increase of 22% from the second quarter of 2013.
Excluding share-based compensation and related payroll tax
expenses, non-GAAP costs and expenses were $1.2 billion in the second quarter of 2014, up
18% compared to $1.02 billion for the
second quarter of 2013.
Income from operations – For the second quarter of 2014,
GAAP income from operations was $1.39
billion, up 147% compared to $562
million in the second quarter of 2013. Excluding share-based
compensation and related payroll tax expenses, non-GAAP income from
operations for the second quarter of 2014 was $1.71 billion, up 116% compared to $794 million for the second quarter of 2013.
Operating margin – GAAP operating margin was 48% for the
second quarter of 2014, compared to 31% in the second quarter of
2013. Excluding share-based compensation and related payroll tax
expenses, non-GAAP operating margin was 59% for the second quarter
of 2014, compared to 44% for the second quarter of 2013.
Provision for income taxes – GAAP income tax expense for
the second quarter of 2014 was $595
million, representing a 43% effective tax rate. Excluding
share-based compensation and related payroll tax expenses, the
non-GAAP effective tax rate would have been approximately 36%.
Net income and EPS – For the second quarter of 2014,
GAAP net income was $791 million, up
138% compared to $333 million for the
second quarter of 2013. Excluding share-based compensation and
related payroll tax expenses and income tax adjustments, non-GAAP
net income for the second quarter of 2014 was $1.09 billion, up 124% compared to $488 million for the second quarter of 2013. GAAP
diluted EPS was $0.30 in the second
quarter of 2014, up 131% compared to $0.13 in the second quarter of 2013. Excluding
share-based compensation and related payroll tax expenses and
income tax adjustments, non-GAAP diluted EPS for the second quarter
of 2014 was $0.42, up 121% compared
to $0.19 in the second quarter of
2013.
Capital expenditures – Capital expenditures for the
second quarter of 2014 were $469
million.
Cash and marketable securities – Cash and marketable
securities were $13.96 billion at the
end of the second quarter of 2014.
Free cash flow – Free cash flow for the second quarter of
2014 was $872 million.
Webcast and Conference Call Information
Facebook will host a conference call to discuss the results at
2 p.m. PT / 5
p.m. ET today. The live webcast of Facebook's earnings
release call can be accessed at investor.fb.com, along with the
earnings press release, financial tables and slide presentation.
Facebook uses the investor.fb.com website and Mark Zuckerberg's Facebook Page
(https://www.facebook.com/zuck) as means of disclosing material
non-public information and for complying with its disclosure
obligations under Regulation FD.
Following the call, a replay will be available at the same
website. A telephonic replay will be available for one week
following the conference call at +1 (404) 537-3406 or +1 (855)
859-2056, conference ID 56452710.
About Facebook
Founded in 2004, Facebook's mission is to give people the power
to share and make the world more open and connected. People use
Facebook to stay connected with friends and family, to discover
what's going on in the world, and to share and express what matters
to them.
Contacts
Investors:
Deborah Crawford
investor@fb.com / investor.fb.com
Press:
Vanessa Chan
press@fb.com / newsroom.fb.com
Forward Looking Statements
This press release contains forward-looking statements regarding
our future business expectations, which are subject to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are only predictions and
may differ materially from actual results due to a variety of
factors including: our ability to retain or increase users and
engagement levels; our reliance on advertising revenue; our ability
to continue to monetize our mobile products; risks associated with
new product development and their introduction as well as other new
business initiatives; our emphasis on user growth and engagement
and the user experience over short-term financial results;
competition; litigation; privacy and regulatory concerns; risks
associated with acquisitions; security breaches; and our ability to
manage growth and geographically-dispersed operations. These and
other potential risks and uncertainties that could cause actual
results to differ from the results predicted are more fully
detailed under the caption "Risk Factors" in our Quarterly
Report on Form 10-Q filed with the SEC on April 25, 2014, which is available on our
Investor Relations website at investor.fb.com and on the SEC
website at www.sec.gov. Additional information will also be set
forth in our Quarterly Report on Form 10-Q for the quarter ended
June 30, 2014. In addition, please note that the date of this
press release is July 23, 2014, and any forward-looking
statements contained herein are based on assumptions that we
believe to be reasonable as of this date. We undertake no
obligation to update these statements as a result of new
information or future events.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with GAAP, we use the
following non-GAAP financial measures: revenue excluding foreign
exchange effect and advertising revenue excluding foreign exchange
effect; non-GAAP costs and expenses; non-GAAP income from
operations; non-GAAP net income; non-GAAP diluted shares; non-GAAP
diluted earnings per share; non-GAAP operating margin; non-GAAP
effective tax rate; and free cash flow. The presentation of these
financial measures is not intended to be considered in isolation or
as a substitute for, or superior to, financial information prepared
and presented in accordance with GAAP. Investors are cautioned that
there are material limitations associated with the use of non-GAAP
financial measures as an analytical tool. In particular, many of
the adjustments to our GAAP financial measures reflect the
exclusion of items, specifically share-based compensation expense
and payroll tax related to share-based compensation expense, and
the related income tax effects, that are recurring and will be
reflected in our financial results for the foreseeable future. In
addition, these measures may be different from non-GAAP financial
measures used by other companies, limiting their usefulness for
comparison purposes. We compensate for these limitations by
providing specific information regarding the GAAP amounts excluded
from these non-GAAP financial measures.
We believe these non-GAAP financial measures provide investors
with useful supplemental information about the financial
performance of our business, enable comparison of financial results
between periods where certain items may vary independent of
business performance, and allow for greater transparency with
respect to key metrics used by management in operating our
business.
We exclude the following items from one or more of our non-GAAP
financial measures:
Share-based compensation expense. We exclude share-based
compensation expense because we believe that the non-GAAP financial
measures excluding this item provide meaningful supplemental
information regarding operational performance. In particular,
because of varying available valuation methodologies, subjective
assumptions and the variety of award types that companies can use
under FASB ASC Topic 718, we believe that providing non-GAAP
financial measures that exclude this expense allows investors the
ability to make more meaningful comparisons between our operating
results and those of other companies. Accordingly, we believe that
excluding this expense provides investors and management with
greater visibility to the underlying performance of our business
operations, facilitates comparison of our results with other
periods, and may also facilitate comparison with the results of
other companies in our industry.
Payroll tax expense related to share-based compensation.
We exclude payroll tax expense related to share-based compensation
expense because, without excluding these tax expenses, investors
would not see the full effect that excluding share-based
compensation expense had on our operating results. These expenses
are tied to the exercise or vesting of underlying equity awards and
the price of our common stock at the time of vesting or exercise,
which factors may vary from period to period independent of the
operating performance of our business. Similar to share-based
compensation expense, we believe that excluding this payroll tax
expense provides investors and management with greater visibility
to the underlying performance of our business operations and
facilitates comparison with other periods as well as the results of
other companies.
Income tax effect of share-based compensation and related
payroll tax expenses. We believe excluding the income tax
effect of non-GAAP adjustments assists investors and management in
understanding the tax provision related to those adjustments and
provides useful supplemental information regarding the underlying
performance of our business operations.
Foreign exchange effect on revenue. We translate revenue
for the three and six months ended June 30, 2014 using prior
year exchange rates for our settlement currencies, which we believe
is a useful metric that facilitates comparison to our historical
performance.
Purchases of property and equipment; Property and equipment
acquired under capital leases. We subtract both purchases of
property and equipment and property and equipment acquired under
capital leases in our calculation of free cash flow because we
believe that these two items collectively represent the amount of
property and equipment we need to procure to support our business,
regardless of whether we finance such property or equipment with a
capital lease. We believe that this methodology can provide useful
supplemental information to help investors better understand
underlying trends in our business.
For more information on our non-GAAP financial measures and a
reconciliation of such measures to the nearest GAAP measure, please
see the "Reconciliation of Non-GAAP Results to Nearest GAAP
Measures" table in this press release.
FACEBOOK,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(In millions,
except for per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
Revenue
|
$ 1,813
|
|
$ 2,910
|
|
$ 3,271
|
|
$ 5,412
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Cost of
revenue
|
465
|
|
473
|
|
878
|
|
936
|
Research and
development
|
344
|
|
492
|
|
637
|
|
947
|
Marketing and
sales
|
269
|
|
358
|
|
472
|
|
681
|
General and
administrative
|
173
|
|
197
|
|
349
|
|
384
|
Total costs and expenses
|
1,251
|
|
1,520
|
|
2,336
|
|
2,948
|
Income from
operations
|
562
|
|
1,390
|
|
935
|
|
2,464
|
Interest and other
income/(expense), net
|
(17)
|
|
(4)
|
|
(37)
|
|
(4)
|
Income before
provision for income taxes
|
545
|
|
1,386
|
|
898
|
|
2,460
|
Provision for income
taxes
|
212
|
|
595
|
|
346
|
|
1,027
|
Net
income
|
$ 333
|
|
$ 791
|
|
$ 552
|
|
$ 1,433
|
Less: Net income
attributable to participating securities
|
2
|
|
3
|
|
3
|
|
6
|
Net income
attributable to Class A and Class B common
stockholders
|
$ 331
|
|
$ 788
|
|
$ 549
|
|
$ 1,427
|
Earnings per share
attributable to Class A and Class B common
stockholders:
|
|
|
|
|
|
|
|
Basic
|
$ 0.14
|
|
$ 0.31
|
|
$ 0.23
|
|
$ 0.56
|
Diluted
|
$ 0.13
|
|
$ 0.30
|
|
$ 0.22
|
|
$ 0.55
|
Weighted average
shares used to compute earnings per share attributable to
Class A and Class B common stockholders:
|
|
|
|
|
|
|
|
Basic
|
2,407
|
|
2,560
|
|
2,397
|
|
2,552
|
Diluted
|
2,502
|
|
2,615
|
|
2,499
|
|
2,609
|
Share-based
compensation expense included in costs and expenses:
|
|
|
|
|
|
|
|
Cost of
revenue
|
$ 11
|
|
$ 16
|
|
$ 19
|
|
$ 28
|
Research and
development
|
151
|
|
219
|
|
268
|
|
400
|
Marketing and
sales
|
33
|
|
50
|
|
57
|
|
93
|
General and
administrative
|
29
|
|
29
|
|
50
|
|
67
|
Total share-based compensation expense
|
$ 224
|
|
$ 314
|
|
$ 394
|
|
$ 588
|
Payroll tax
expenses related to share-based compensation included in costs and
expenses:
|
|
|
|
|
|
|
|
Cost of
revenue
|
$ -
|
|
$ -
|
|
$ 1
|
|
$ 2
|
Research and
development
|
7
|
|
6
|
|
18
|
|
21
|
Marketing and
sales
|
1
|
|
2
|
|
5
|
|
6
|
General and
administrative
|
-
|
|
-
|
|
4
|
|
4
|
Total payroll tax expenses related to share-based
compensation
|
$ 8
|
|
$ 8
|
|
$ 28
|
|
$ 33
|
FACEBOOK,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
millions)
|
(Unaudited)
|
|
|
|
|
December 31,
2013
|
|
June 30,
2014
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$ 3,323
|
|
$ 4,384
|
|
Marketable
securities
|
8,126
|
|
9,572
|
|
Accounts
receivable
|
1,109
|
|
1,190
|
|
Prepaid expenses and
other current assets
|
512
|
|
411
|
|
|
Total current
assets
|
13,070
|
|
15,557
|
Property and
equipment, net
|
2,882
|
|
3,334
|
Goodwill and
intangible assets, net
|
1,722
|
|
1,672
|
Other
assets
|
221
|
|
206
|
Total
assets
|
$ 17,895
|
|
$ 20,769
|
|
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$ 87
|
|
$ 146
|
|
Developer partners
payable
|
181
|
|
176
|
|
Accrued expenses and
other current liabilities
|
555
|
|
666
|
|
Deferred revenue and
deposits
|
38
|
|
53
|
|
Current portion of
capital lease obligations
|
239
|
|
173
|
|
|
Total current
liabilities
|
1,100
|
|
1,214
|
|
|
|
|
|
|
Capital lease
obligations, less current portion
|
237
|
|
153
|
Other
liabilities
|
1,088
|
|
1,056
|
|
|
Total
liabilities
|
2,425
|
|
2,423
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Common stock and
additional paid-in capital
|
12,297
|
|
13,759
|
|
Accumulated other
comprehensive income (loss)
|
14
|
|
(5)
|
|
Retained
earnings
|
3,159
|
|
4,592
|
|
|
Total stockholders'
equity
|
15,470
|
|
18,346
|
Total liabilities
and stockholders' equity
|
$ 17,895
|
|
$ 20,769
|
FACEBOOK,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
millions)
|
(Unaudited)
|
|
|
Three Months Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
Net income
|
$ 333
|
|
$ 791
|
|
$ 552
|
|
$ 1,433
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
230
|
|
257
|
|
463
|
|
521
|
Lease
abandonment
|
57
|
|
(13)
|
|
65
|
|
(26)
|
Share-based
compensation
|
224
|
|
314
|
|
394
|
|
588
|
Deferred income
taxes
|
26
|
|
(33)
|
|
19
|
|
(34)
|
Tax benefit from
share-based award activity
|
89
|
|
530
|
|
148
|
|
875
|
Excess tax benefit
from share-based award activity
|
(93)
|
|
(535)
|
|
(155)
|
|
(883)
|
Other
|
11
|
|
(6)
|
|
20
|
|
3
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(116)
|
|
(187)
|
|
(62)
|
|
(82)
|
Prepaid expenses and
other current assets
|
429
|
|
14
|
|
428
|
|
10
|
Other
assets
|
(8)
|
|
2
|
|
(44)
|
|
18
|
Accounts
payable
|
1
|
|
79
|
|
2
|
|
69
|
Developer partners
payable
|
(18)
|
|
(12)
|
|
3
|
|
(5)
|
Accrued expenses and
other current liabilities
|
42
|
|
102
|
|
9
|
|
75
|
Deferred revenue and
deposits
|
2
|
|
15
|
|
2
|
|
15
|
Other
liabilities
|
113
|
|
23
|
|
197
|
|
49
|
Net cash provided
by operating activities
|
1,322
|
|
1,341
|
|
2,041
|
|
2,626
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
(268)
|
|
(469)
|
|
(595)
|
|
(832)
|
Purchases of
marketable securities
|
(1,952)
|
|
(1,508)
|
|
(3,460)
|
|
(4,482)
|
Sales of marketable
securities
|
576
|
|
1,121
|
|
1,275
|
|
1,968
|
Maturities of
marketable securities
|
1,271
|
|
455
|
|
2,174
|
|
1,074
|
Acquisitions of
businesses, net of cash acquired, and purchases of intangible
assets
|
(122)
|
|
(19)
|
|
(221)
|
|
(19)
|
Other investing
activities, net
|
(3)
|
|
(2)
|
|
3
|
|
(3)
|
Net cash used in
investing activities
|
(498)
|
|
(422)
|
|
(824)
|
|
(2,294)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
Taxes paid related to
net share settlement of equity awards
|
(153)
|
|
—
|
|
(558)
|
|
(3)
|
Proceeds from
exercise of stock options
|
2
|
|
1
|
|
10
|
|
2
|
Principal payments on
capital lease obligations
|
(91)
|
|
(66)
|
|
(200)
|
|
(150)
|
Excess tax benefit
from share-based award activity
|
93
|
|
535
|
|
155
|
|
883
|
Net cash (used in)
provided by financing activities
|
(149)
|
|
470
|
|
(593)
|
|
732
|
Effect of exchange
rate changes on cash and cash equivalents
|
1
|
|
(3)
|
|
(7)
|
|
(3)
|
Net increase in cash
and cash equivalents
|
676
|
|
1,386
|
|
617
|
|
1,061
|
Cash and cash
equivalents at beginning of period
|
2,325
|
|
2,998
|
|
2,384
|
|
3,323
|
Cash and cash
equivalents at end of period
|
$ 3,001
|
|
$ 4,384
|
|
$ 3,001
|
|
$ 4,384
|
Supplemental cash
flow data
|
|
|
|
|
|
|
|
Cash paid during the
period for:
|
|
|
|
|
|
|
|
Interest
|
$ 14
|
|
$ 4
|
|
$ 26
|
|
$ 8
|
Income
taxes
|
$ 9
|
|
$ 24
|
|
$ 18
|
|
$ 61
|
Cash
received during the period for:
|
|
|
|
|
|
|
|
Refund of income
taxes
|
$ 419
|
|
$ 2
|
|
$ 419
|
|
$ 2
|
Non-cash
investing and financing activities:
|
|
|
|
|
|
|
|
Net change in
accounts payable and accrued expenses and other current liabilities
related to property and equipment additions
|
$ (52)
|
|
$ 21
|
|
$ (5)
|
|
$ 18
|
Property and
equipment acquired under capital leases
|
$ -
|
|
$ -
|
|
$ 11
|
|
$ -
|
Fair value of shares
issued related to acquisitions of businesses
|
$ 44
|
|
$ -
|
|
$ 77
|
|
$ -
|
Reconciliation of
Non-GAAP Results to Nearest GAAP Measures
|
(In millions,
except percentages and per share amounts)
|
(Unaudited)
|
|
|
Three Months Ended
June
30,
|
|
Six Months
Ended
June
30,
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
GAAP
revenue
|
$ 1,813
|
|
$ 2,910
|
|
$ 3,271
|
|
$ 5,412
|
Foreign
exchange effect on 2014 revenue using 2013 rates
|
|
|
(30)
|
|
|
|
(21)
|
Revenue excluding
foreign exchange effect
|
|
|
$ 2,880
|
|
|
|
$ 5,391
|
GAAP revenue
year-over-year change %
|
|
|
61 %
|
|
|
|
65 %
|
Revenue excluding
foreign exchange effect year-over-year change %
|
|
|
59 %
|
|
|
|
65 %
|
GAAP advertising
revenue
|
$ 1,599
|
|
$ 2,676
|
|
$ 2,844
|
|
$ 4,941
|
Foreign
exchange effect on 2014 advertising revenue using 2013
rates
|
|
|
(30)
|
|
|
|
(21)
|
Advertising revenue
excluding foreign exchange effect
|
|
|
$ 2,646
|
|
|
|
$ 4,920
|
GAAP advertising
revenue year-over-year change %
|
|
|
67 %
|
|
|
|
74 %
|
Advertising revenue
excluding foreign exchange effect year-over-year change
%
|
|
|
65 %
|
|
|
|
73 %
|
GAAP costs and
expenses
|
$ 1,251
|
|
$ 1,520
|
|
$ 2,336
|
|
$ 2,948
|
Share-based
compensation expense
|
(224)
|
|
(314)
|
|
(394)
|
|
(588)
|
Payroll tax
expenses related to share-based compensation
|
(8)
|
|
(8)
|
|
(28)
|
|
(33)
|
Non-GAAP costs and
expenses
|
$ 1,019
|
|
$ 1,198
|
|
$ 1,914
|
|
$ 2,327
|
GAAP income from
operations
|
$ 562
|
|
$ 1,390
|
|
$ 935
|
|
$ 2,464
|
Share-based
compensation expense
|
224
|
|
314
|
|
394
|
|
588
|
Payroll tax
expenses related to share-based compensation
|
8
|
|
8
|
|
28
|
|
33
|
Non-GAAP income from
operations
|
$ 794
|
|
$ 1,712
|
|
$ 1,357
|
|
$ 3,085
|
GAAP net
income
|
$ 333
|
|
$ 791
|
|
$ 552
|
|
$ 1,433
|
Share-based
compensation expense
|
224
|
|
314
|
|
394
|
|
588
|
Payroll tax
expenses related to share-based compensation
|
8
|
|
8
|
|
28
|
|
33
|
Income tax
adjustments
|
(77)
|
|
(22)
|
|
(174)
|
|
(78)
|
Non-GAAP net
income
|
$ 488
|
|
$ 1,091
|
|
$ 800
|
|
$ 1,976
|
GAAP and Non-GAAP
diluted shares
|
2,502
|
|
2,615
|
|
2,499
|
|
2,609
|
GAAP diluted earnings
per share
|
$ 0.13
|
|
$ 0.30
|
|
$ 0.22
|
|
$ 0.55
|
Non-GAAP
adjustments to net income
|
0.06
|
|
0.12
|
|
0.10
|
|
0.21
|
Non-GAAP diluted
earnings per share
|
$ 0.19
|
|
$ 0.42
|
|
$ 0.32
|
|
$ 0.76
|
GAAP operating
margin
|
31 %
|
|
48 %
|
|
29 %
|
|
46 %
|
Share-based
compensation expense
|
12 %
|
|
11 %
|
|
12 %
|
|
11 %
|
Payroll tax
expenses related to share-based compensation
|
—%
|
|
—%
|
|
1 %
|
|
1 %
|
Non-GAAP operating
margin
|
44 %
|
|
59 %
|
|
41 %
|
|
57 %
|
GAAP income before
provision for income taxes
|
$ 545
|
|
$ 1,386
|
|
$ 898
|
|
$ 2,460
|
GAAP provision for
income taxes
|
212
|
|
595
|
|
346
|
|
1,027
|
GAAP effective tax
rate
|
39 %
|
|
43 %
|
|
39 %
|
|
42 %
|
GAAP income before
provision for income taxes
|
$ 545
|
|
$ 1,386
|
|
$ 898
|
|
$ 2,460
|
Share-based
compensation and related payroll tax expenses
|
232
|
|
322
|
|
422
|
|
621
|
Non-GAAP income
before provision for income taxes
|
$ 777
|
|
$ 1,708
|
|
$ 1,320
|
|
$ 3,081
|
Non-GAAP provision
for income taxes
|
289
|
|
617
|
|
520
|
|
1,105
|
Non-GAAP effective
tax rate
|
37 %
|
|
36 %
|
|
39 %
|
|
36 %
|
Net cash provided by
operating activities
|
$ 1,322
|
|
$ 1,341
|
|
$ 2,041
|
|
$ 2,626
|
Purchases of
property and equipment
|
(268)
|
|
(469)
|
|
(595)
|
|
(832)
|
Property and
equipment acquired under capital leases
|
—
|
|
—
|
|
(11)
|
|
—
|
Free cash
flow
|
$ 1,054
|
|
$ 872
|
|
$ 1,435
|
|
$ 1,794
|
SOURCE Facebook, Inc.