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Facebook Reports Fourth Quarter and Full Year 2017 Results
MENLO PARK, Calif. – January 31, 2018 – Facebook, Inc. (NASDAQ: FB) today reported financial results for the quarter and full year ended December 31, 2017.
"2017 was a strong year for Facebook, but it was also a hard one," said Mark Zuckerberg, Facebook founder and CEO. "In 2018, we're focused on making sure Facebook isn't just fun to use, but also good for people's well-being and for society. We're doing this by encouraging meaningful connections between people rather than passive consumption of content. Already last quarter, we made changes to show fewer viral videos to make sure people's time is well spent. In total, we made changes that reduced time spent on Facebook by roughly 50 million hours every day. By focusing on meaningful connections, our community and business will be stronger over the long term."
Fourth Quarter and Full Year 2017 Financial Highlights
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 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Revenue: | |||||||||||||||||||||
Advertising | $ | 12,779 | $ | 8,629 | 48 | % | $ | 39,942 | $ | 26,885 | 49 | % | |||||||||
Payments and other fees | 193 | 180 | 7 | % | 711 | 753 | (6 | )% | |||||||||||||
Total revenue | 12,972 | 8,809 | 47 | % | 40,653 | 27,638 | 47 | % | |||||||||||||
Total costs and expenses | 5,620 | 4,243 | 32 | % | 20,450 | 15,211 | 34 | % | |||||||||||||
Income from operations | $ | 7,352 | $ | 4,566 | 61 | % | $ | 20,203 | $ | 12,427 | 63 | % | |||||||||
Operating margin | 57 | % | 52 | % | 50 | % | 45 | % | |||||||||||||
Provision for income taxes(1) | $ | 3,194 | $ | 4,660 | |||||||||||||||||
Effective tax rate(1) | 43 | % | 23 | % | |||||||||||||||||
Net income(1) | $ | 4,268 | $ | 3,568 | 20 | % | $ | 15,934 | $ | 10,217 | 56 | % | |||||||||
Diluted Earnings per Share (EPS)(1) | $ | 1.44 | $ | 1.21 | 19 | % | $ | 5.39 | $ | 3.49 | 54 | % | |||||||||
(1) In December 2017, the 2017 Tax Cuts and Jobs Act was enacted and significantly impacted U.S. tax law. As a result of this legislation, our fourth quarter and full year 2017 provision for income taxes increased by $2.27 billion, which impacted our effective tax rate, net income and diluted EPS for such periods. Our diluted EPS decreased by $0.77 for both the fourth quarter and full year 2017. See "2017 Tax Cuts and Jobs Act" below for additional information.
Fourth Quarter and Full Year 2017 Operational and Other Financial Highlights
• | Daily active users (DAUs) – DAUs were 1.40 billion on average for December 2017, an increase of 14% year-over-year. |
• | Monthly active users (MAUs) – MAUs were 2.13 billion as of December 31, 2017, an increase of 14% year-over-year. |
• | Mobile advertising revenue – Mobile advertising revenue represented approximately 89% of advertising revenue for the fourth quarter of 2017, up from approximately 84% of advertising revenue in the fourth quarter of 2016. |
• | Capital expenditures – Capital expenditures were $2.26 billion and $6.73 billion for the fourth quarter and full year 2017, respectively. |
• | Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $41.71 billion at the end of the fourth quarter of 2017. |
• | Headcount – Headcount was 25,105 as of December 31, 2017, an increase of 47% year-over-year. |
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The following information was filed by Facebook Inc (FB) on Wednesday, January 31, 2018 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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