Facebook Q1 Revenues, Profits Soar; New CFO Named
David Wehner Named CFO
April 23, 2014 at 3:00 PM (PT)
Rumors of FACEBOOK's imminent demise, or the notion that it has "jumped the shark," seem to be a bit premature, as its Q1 2014 results easily beat WALL STREET expectations. The social media titan reported $2.5 billion in revenue, a 72% increase over the same quarter last year, with adjusted earnings at $885 million, earning a net profit per share of 34 cents. Analysts expected a 24-cent profit per share.
The key to FACEBOOK's revenue burst is mobile ad revenues, which rose from 30% of ad sales in Q1 13 to 59% this year. Overall ad sales soared 82%, to $2.27 billion.
"FACEBOOK's business is strong and growing, and this quarter was a great start to 2014," FACEBOOK Founder/CEO MARK ZUCKERBERG said. "We've made some long-term bets on the future while staying focused on executing and improving our core products and business. We're in great position to continue making progress towards our mission."
FACEBOOK'S Q1 metrics for MARCH 2014:
* Daily active users (DAUs) -- 802 million on average, an increase of 21% year-over-year.
* Mobile DAUs were 609 million on average, an increase of 43% year-over-year.
* Monthly active users (MAUs) were 1.28 billion, an increase of 15% year-over-year.
* Mobile MAUs were 1.01 billion, an increase of 34% year-over-year.
David Wehner New CFO
FACEBOOK also announced that VP/Corporate Finance and Business Planning DAVID WEHNER will be promoted to CFO on JUNE 1st, succeeding DAVID EBERSMAN, who will step down, but remain with the company through SEPTEMBER to ensure a seamless transition.
"DAVID has been a great partner in building FACEBOOK, and I'm grateful for everything he's done to help make the world more open and connected," said ZUCKERBERG. "DAVID set us up to operate efficiently and make the long term investments we need, and built an incredibly strong team including DAVE WEHNER, our next CFO. I look forward to working with DAVE in his new role."
"This has been a tough decision because FACEBOOK is such a great company and has such a bright future ahead, but I've decided to move back into healthcare where I spent my career before FACEBOOK," EBERSMAN said. "It's been a privilege working at FACEBOOK and being part of such a great team. We have an incredibly talented finance organization, and I have complete confidence in DAVE WEHNER and his ability to lead the team going forward."