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No. of Recommendations: 6
On 4/24/19, Facebook reported 2019 Q1 earnings after the bell, and reactions were very positive. Shares ended trading up ~4.5% in regular trading, after the announcement. In all, Facebook beat analyst consensus on revenues despite the numerous scandals that have plagued the social media company.

By the Numbers:

Earnings per share (EPS): $0.85 reported, lagging analyst consensus of $1.66. The reported EPS included a $3 Billion, or $1.04 per share, legal expense. Excluding the legal expense, earnings would have been $1.89 per share, exceeding expectations. Earnings down 50% year over year.
Revenue: $15.08 Billion, beating analyst consensus of $14.97 Billion. Revenue up 26% year over year.
Monthly Active Users (MAU): 2.38 Billion, MAU up 8% year over year.
Daily Active Users (DAU): 1.56 Billion, DAU up 8% year over year.

To put it into perspective, the earnings and revenue numbers look decent. Both the monthly and daily user metrics are up 8% year over year. Facebook's operating margin narrowed to 22% down from 46% a year ago. Across individual geographic segments, both revenue and advertising revenue were up across the board.

User Metrics:

Both monthly and daily active users breakouts show US & Canada numbers were up. European user numbers continued to climb. Users in the Asia-Pacific and rest of the world accounted for overall user growth.

Across the full portfolio of Facebook owned applications, there are 2.7 Billion monthly users. More than a third of the Earth's population use Facebook, WhatsApp, Instagram, or Messenger every month. Approximately, 2.1 Billion people use at least one of Facebook's services each day.

Previously we mentioned the "Stories" feature had been growing faster than Facebook can monetize the product. Stories sees ~500 Million daily users, and ~3 Million advertisers are now buying Stories ads across Facebook’s four apps. The expectation is Stories would be bigger than the News Feed feature that makes up the majority of the user experience today, and eventually have significant impact on the company’s revenue.

Other notable mentions:

On the call, Zuckerberg stated Facebook is consulting with security experts on content, end to end encryption for products and services, and ephemeral user information (limit the information availability on the platforms). Additionally, there is expansion for transparency with political advertising especially in the EU, but also elsewhere, globally.

Facebook also has invested in their Facebook Marketplace cutting into the turf of Craigslist and Ebay. Marketplace is seeing millions of interactions per day, and will be expanding into other countries.


Link to Press Release:

https://investor.fb.com/investor-news/press-release-details/...


Replay of the Conference Call:

https://edge.media-server.com/m6/p/79isfp87


Link to Conference Call Transcript:

https://www.fool.com/earnings/call-transcripts/2019/04/25/fa...


Link to 2019 Q1 Conference Call Slide Deck Presentation (PDF):

https://s21.q4cdn.com/399680738/files/doc_financials/2018/Q4...


More Foolish Coverage:

Facebook Earnings: What You Should Know - https://www.fool.com/investing/2019/04/25/facebook-earnings-...

1.5 Billion People Now Use Stories Daily on One of Facebook's Core Platforms - https://www.fool.com/investing/2019/04/25/15-billion-people-...

Facebook Is Bracing for a Record Fine Over Privacy Transgressions, but Investors Just Shrug - https://www.fool.com/investing/2019/04/25/facebook-is-bracin...

Why Facebook Stock Jumped Thursday - https://www.fool.com/investing/2019/04/25/why-facebook-stock...

Stock Market News: Facebook and Microsoft Power Tech Higher - https://www.fool.com/investing/2019/04/25/stock-market-news-...

Facebook Soars, Defying Detractors With Strong Earnings Results - https://www.fool.com/investing/2019/04/25/facebook-soars-def...

Here's Why Investors Are So Impressed With Facebook's Earnings - https://www.fool.com/investing/2019/04/25/heres-why-investor...


If you like this type of coverage and would like to see more of it, let me know by hitting the "Recommend It!" button or leave a comment. More importantly, feel free to chime in with your thoughts and expectations for FY19.


CMFHeavyMetal

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Ticker Guide for Costco Wholesale (COST), Facebook (FB), iQiyi (IQ), Retail Opportunity Investments Corp. (ROIC), & Upwork(UPWK)
Disclosure: May own shares of some, or all of the companies mentioned in this post. (http://tinyurl.com/HM-Disclosure)
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