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Facebook Reports Fourth Quarter and Full Year 2016 Results
MENLO PARK, Calif. – February 1, 2017 – Facebook, Inc. (NASDAQ: FB) today reported financial results for the fourth quarter and full year ended December 31, 2016.
"Our mission to connect the world is more important now than ever," said Mark Zuckerberg, Facebook founder and CEO. "Our business did well in 2016, but we have a lot of work ahead to help bring people together."
Fourth Quarter and Full Year 2016 Financial Highlights(1)
Three Months Ended December 31, | Year-over-Year % Change | Year Ended December 31, | Year-over-Year % Change | ||||||||||||||||||
In millions, except percentages and per share amounts | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
Revenue: | |||||||||||||||||||||
Advertising | $ | 8,629 | $ | 5,637 | 53 | % | $ | 26,885 | $ | 17,079 | 57 | % | |||||||||
Payments and other fees | 180 | 204 | (12 | )% | 753 | 849 | (11 | )% | |||||||||||||
Total revenue | 8,809 | 5,841 | 51 | % | 27,638 | 17,928 | 54 | % | |||||||||||||
Total costs and expenses(2) | 4,243 | 3,281 | 29 | % | 15,211 | 11,703 | 30 | % | |||||||||||||
Income from operations(2) | $ | 4,566 | $ | 2,560 | 78 | % | $ | 12,427 | $ | 6,225 | 100 | % | |||||||||
Operating margin(2) | 52 | % | 44 | % | 45 | % | 35 | % | |||||||||||||
Provision for income taxes(2) | $ | 965 | $ | 2,301 | |||||||||||||||||
Effective tax rate(2) | 21 | % | 18 | % | |||||||||||||||||
Net income(2) | $ | 3,568 | $ | 1,562 | 128 | % | $ | 10,217 | $ | 3,688 | 177 | % | |||||||||
Diluted Earnings per Share (EPS)(2) | $ | 1.21 | $ | 0.54 | 124 | % | $ | 3.49 | $ | 1.29 | 171 | % | |||||||||
(1) | The information in the Fourth Quarter and Full Year 2016 Financial Highlights table is presented in accordance with generally accepted accounting principles in the United States (GAAP). For non-GAAP financial information, see the table below titled "Reconciliation of GAAP to Non-GAAP Results." |
(2) | In the fourth quarter of 2016, we elected to early adopt Accounting Standards Update No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvement to Employee Share-based Payment Accounting (ASU 2016-09) which, among other items, requires us to record excess tax benefits as a reduction of the provision for income taxes in the income statements, whereas they were previously recognized in equity. We are required to reflect any adoption adjustments as of January 1, 2016, the beginning of the annual period that includes the interim period of adoption. As such, certain financial highlights data for the three months and year ended December 31, 2016 included the impact of the ASU 2016-09 adoption. See "Adoption of New Accounting Guidance" below for additional information. |
Full Year 2016 Operational Highlights
• | Daily active users (DAUs) – DAUs were 1.23 billion on average for December 2016, an increase of 18% year-over-year. |
• | Mobile DAUs – Mobile DAUs were 1.15 billion on average for December 2016, an increase of 23% year-over-year. |
• | Monthly active users (MAUs) – MAUs were 1.86 billion as of December 31, 2016, an increase of 17% year-over-year. |
• | Mobile MAUs – Mobile MAUs were 1.74 billion as of December 31, 2016, an increase of 21% year-over-year. |
Fourth Quarter and Full Year 2016 Other Financial Highlights
• | Mobile advertising revenue – Mobile advertising revenue represented approximately 84% of advertising revenue for the fourth quarter of 2016, up from approximately 80% of advertising revenue in the fourth quarter of 2015. |
• | Capital expenditures – Capital expenditures for the full year 2016 were $4.49 billion. |
1
The following information was filed by Facebook Inc (FB) on Wednesday, February 1, 2017 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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