Facebook’s fourth-quarter revenue of $21.1 billion net profit is up 7% year-on-year

Facebook today reported unaudited results for the fourth and full fiscal yearended for the year ended December 31. Facebook reported fourth-quarter revenue of $21.082 billion, up 25 percent from $16.914 billion a year earlier, and net profit of $7.349 billion, up 7 percent from $6.882 billion a year earlier.

Facebook's fourth-quarter revenue of $21.1 billion net profit is up 7% year-on-year

Key results for the fourth quarter:

– Facebook’s fourth-quarter revenue was $21,082 million, up 25% from $16.914 billion a year earlier.

– Facebook’s fourth-quarter operating profit was $8.858 billion, up 13% from $7.82 billion a year earlier.

– Facebook’s operating margin was 42% in the fourth quarter and 46% in the same period a year earlier;

– Facebook’s fourth-quarter net profit was $7.349 billion, up 7% from a year earlier of $6.882 billion.

– Facebook’s fourth-quarter U.S. Depositary Receipt diluted earnings per share were $2.56, up 8 percent from $2.38 a year earlier.

Key results for FY2019:

– Facebook’s fiscal 2019 revenue was $70,697 million, up 27% from $55.838 billion in fiscal 2018;

– Facebook’s operating profit for fiscal 2019 was $23.986 billion, down 4% from $24.913 billion in fiscal 2018;

– Facebook’s net profit for fiscal 2019 was $18.485 billion, down 16% from $22.112 billion in fY18;

– Facebook’s diluted earnings per American depositary receipt per share for fiscal 2019 were $6.43, down 15% from $7.57 per American Depositary Receipt diluted in fiscal 2018.

Key points of operation:

– In December 2019, Facebook’s daily active user base averaged 1.66 billion, an increase of 9% over the same period last year;

– As of December 31, 2019, Facebook had 2.50 billion monthly active users, an increase of 8% over the same period last year;

– In December 2019, the average daily active user number of Facebook services “family” (including services such as Facebook, Instagram, WhatsApp and Messenger) was 2.26 billion, an increase of 11% over the same period last year;

– As of December 31, 2019, the number of monthly active users of the Facebook service “Family” was 2.89 billion, an increase of 9% over the same period last year;

– Facebook’s capital expenditure in the fourth quarter was $4.24 billion and its full-year capital expenditure was $15.65 billion, including principal payments for financial leases;

– Facebook’s total cash, cash equivalents and marketable securities held by the end of the fourth quarter of 2019 amounted to $54.86 billion;

– As of December 31, 2019, Facebook had 44,942 employees, an increase of 26% over the same period last year.

Mark Zuckerberg, Facebook’s founder and chief executive, said: “We have had a strong quarterly and strong year-end performance, while our community and business continue to grow. We remain focused on building services to help people stay connected with the people they care about. ”

Financial analysis:

Revenue:

Facebook’s fourth-quarter revenue was $21,082 million, up 25 percent from $16.914 billion a year earlier.

Facebook’s revenue for fiscal 2019 was $70,697 million, up 27 percent from $55.838 billion in fiscal 2018.

Facebook’s advertising revenue in the fourth quarter was $20,736 million, up 25 percent from $16.64 billion a year earlier.

Facebook’s advertising revenue for fiscal 2019 was $69.655 billion, up 27 percent from $55.13 billion in fiscal 2016.

Facebook’s fourth-quarter revenue from other businesses was $346 million, up 26 percent from $274 million a year earlier.

Facebook’s revenue from other businesses in fiscal 2019 was $1.042 billion, up 26 percent from $825 million in fiscal 2016.

Costs and expenses:

Facebook’s total cost and expenses in the fourth quarter were $12.224 billion, up 34 percent from $9,094 million a year earlier.

Facebook’s total cost and expenditure for fiscal 2019 was $46.711 billion, up 51% from $30.925 billion in fiscal 2018.

Operating profit:

Facebook’s fourth-quarter operating profit was $8.858 billion, up 13 percent from $7.82 billion a year earlier.

Facebook’s operating profit for fiscal 2019 was $23.986 billion, down 4% from $24.913 billion in fiscal 2018.

Operating margin:

Facebook’s operating margin was 42% in the fourth quarter and 46% in the same period a year earlier.

Facebook’s operating margin for fiscal 2019 was 34% and its operating margin for fiscal 2018 was 45%.

Income tax reserve:

Facebook’s income tax reserve for the fourth quarter was $1.820 billion, up 67 percent from $1.089 billion a year earlier. Facebook’s effective tax rate was 20 percent in the fourth quarter, compared with 14 percent a year earlier.

Facebook’s income tax reserve for fiscal 2019 was $6.327 billion, up 95 percent from $3.249 billion in fiscal 2018. Facebook’s effective tax rate for fiscal 2019 is 25 percent, compared with 13 percent in fiscal 2018.

Net profit:

Facebook’s fourth-quarter net profit was $7.349 billion, up 7 percent from $6.882 billion a year earlier. Facebook’s fourth-quarter U.S. Depositary Receipt stake was $2.56, up 8 percent from $2.38 a year earlier.

Facebook’s net profit for fiscal 2019 was $18.485 billion, down 16 percent from $22.112 billion in fiscal 2018. Facebook’s diluted earnings per American depositary receipt for fiscal 2019 were $6.43, down 15 percent from $7.57 per American Depositary Receipt diluted in fiscal 2018.

Capital expenditures:

Facebook’s capital expenditure in the fourth quarter was $4.24 billion, compared with $15.65 billion for the full year, including principal payments on financial leases.

Cash and marketable securities:

Facebook’s total cash, cash equivalents and marketable securities were $54.86 billion at the end of the fourth quarter of 2019.

Free Cash Flow:

Facebook’s free cash flow in the fourth quarter was $4.842 billion, compared with $3.318 billion a year earlier.

Facebook’s free cash flow for fiscal 2019 was $20,660 million, compared with $15.359 billion in fiscal 2018.

Teleconference:

After the results are released, Facebook will hold a conference call on January 29 at 5 p.m. EST (6 a.m. Beijing time on January 30) to answer questions from analysts and investors. Investors can visit the investor relations channel on Facebook at http://investor.fb.com/listen to the conference call live and view the company’s earnings.

After the conference call, investors can also visit the same page to listen to a recording of Facebook’s earnings conference call. Within one week of the conference, investors can dial the recording at (404) 537-3406 or (855) 859-2056 with the password “1262637”.

Analyst seexpectations and share price changes:

Facebook’s fourth-quarter results beat Wall Street analysts’ expectations. Forty-four analysts had expected Facebook’s fourth-quarter earnings per share to be $2.53, and 43 analysts had expected fourth-quarter revenue of $20.89 billion, according to Yahoo. Despite this, Facebook’s shares fell more than 6 percent in after-hours trading on the Nasdaq after the results.

Separately, 42 analysts had expected Facebook’s earnings per share of $6.43 per share for fiscal 2019, compared with $70.5 billion for the 2019 financial year, according to Yahoo Financial.

Facebook shares rose $5.44, or 2.50 percent, to $223.23 in regular trading on the Nasdaq. Facebook shares fell $14.36, or 6.43 percent, to $208.87 in after-hours trading as of 4:20 p.m. EST on Wednesday (5:20 a.m. EST on Thursday). For the past 52 weeks, Facebook has had a top price of $224.20 and a low of $145.70.