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No. of Recommendations: 2
On 10/30/19, Facebook reported 2019 Q3 earnings after the bell, and reactions were very positive. In all, Facebook beat analyst consensus on both earnings and revenues despite the mixed news coverage around the social media company.

By the Numbers:

Earnings per share (EPS): $2.12 reported, exceeding analyst consensus of $1.91; up 20% YoY.
Revenue: $17.65 Billion, beating analyst consensus of $17.32 Billion. Revenue up 29% year over year.
Monthly Active Users (MAU): 2.45 Billion, MAU up 8% year over year.
Daily Active Users (DAU): 1.62 Billion, DAU up 9% year over year.
Average Revenue per User (ARPU): $7.26 Worldwide, up 19% YoY

To put it into perspective, the earnings and revenue numbers look solid. Both the monthly and daily user metrics are up 8% and 9%, respectively, year over year. Facebook's operating margin lowered to 41% down from 42% 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 2.8 Billion monthly users. Let that sink in for a moment - More than a third of the Earth's population use Facebook, WhatsApp, Instagram, or Messenger every month. Approximately, 2.2 Billion people use at least one of Facebook's services each day.

Other notable mentions:

Zuckerberg made mention of the 2020 US political campaign season and did his part to try and reassure investors of their focus "on progress in social issues". With the earnings announcement came shots fired from Twitter CEO Jack Dorsey on their stance to disallow political advertisement. Don't expect Facebook to sit out the political ad season, it consistently brings stronger influx of quarterly advertising revenues.

Facebook continues to advance into the turf of many other online competitors with marketplace with advertising revenues beginning to materialize. Stories continue to be a hit and with ads growing in the new segment, Facebook looks to have new leads into advertising revenue for some time. Libra is still a hot topic, but we will need to wait and see on its fate with numerous backers dropping out of the alliance.


Link to Press Release:

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


Replay of the Conference Call:

https://edge.media-server.com/mmc/p/y85vk4q9


Link to Conference Call Transcript:

https://s21.q4cdn.com/399680738/files/doc_financials/2019/q3...

Link to Follow Up Call Transcript:

https://s21.q4cdn.com/399680738/files/doc_financials/2019/q3...


Link to 2019 Q3 Conference Call Slide Deck Presentation (PDF):

https://s21.q4cdn.com/399680738/files/doc_financials/2019/q3...


More Foolish Coverage:

People Are Spending Even More Time On Facebook - https://www.fool.com/investing/2019/11/02/people-are-spendin...

2 Growth Opportunities for Facebook - https://www.fool.com/investing/2019/11/02/2-growth-opportuni...

Facebook's Report Shows It Only Has 1 Thing To Worry About - https://www.fool.com/investing/2019/11/02/facebooks-report-s...

Why Facebook Stock Jumped Thursday - https://www.fool.com/investing/2019/10/31/why-facebook-stock...

Stock Market News: Apple, Facebook Lead Earnings Charge - https://www.fool.com/investing/2019/10/31/stock-market-news-...

Facebook's Earnings Please Investors; Stock Pops - https://www.fool.com/investing/2019/10/31/facebooks-earnings...


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), Magellan Midstream Partners (MMP), 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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