Facebook headquarters entrance sign

Facebook shares surged 15.5% on Thursday after impressive quarterly earnings

Written by Joseph Nordqvist

Published: 22:33, January 28, 2016

Shares in Facebook rose 15.5 percent on Thursday, the biggest surge since July 2013, after the company reported much better than expected fourth quarter results.

Facebook released results for the fourth quarter and full year ended December 31, 2015.

Revenue for the full year 2015 was $17.93 billion, an increase of 44% year-over year, while net income for the year was $3.69 billion.

Revenue in the fourth quarter was $5.637 billion, up from $4.299 billion in the previous quarter. Mobile advertising revenue accounted for approximately 80% of total advertising revenue in the fourth quarter, up from 69% of advertising revenue in the fourth quarter of 2014.

The tech giant said it had 1.59 billion monthly active users (one quarter of the world’s population) as of December 31 – an increase of 14% year-over-year.

Facebook Fourth Quarter and Full Year 2015 Financial Summary:

Three Months Ended December 31,

Year Ended December 31,

In millions, except percentages and per share amounts

2015

2014

2015

2014

Revenue

$ 5,841

$ 3,851

$ 17,928

$ 12,466

Income from Operations

   GAAP

$ 2,560

$ 1,133

$   6,225

$   4,994

   Non-GAAP*

$ 3,523

$ 2,219

$ 10,001

$   7,207

Operating Margin

   GAAP

44%

29%

35%

40%

   Non-GAAP*

60%

58%

56%

58%

Net Income

   GAAP

$ 1,562

$    701

$   3,688

$   2,940

   Non-GAAP*

$ 2,265

$ 1,518

$   6,518

$   4,713

Diluted Earnings per Share (EPS)

   GAAP

$   0.54

$   0.25

$     1.29

$     1.10

   Non-GAAP*

$   0.79

$   0.54

$     2.28

$     1.77


“2015 was a great year for Facebook. Our community continued to grow and our business is thriving,” said Mark Zuckerberg, Facebook founder and CEO. “We continue to invest in better serving our community, building our business, and connecting the world.”

Sheryl Sandberg, Facebook COO, said during the fourth quarter conference call: “We had a terrific fourth quarter, capping off a great 2015. Q4 ad revenue grew 57%, or 66% on a constant currency basis. Mobile ad revenue reached $4.5 billion, up 81% year-over-year, and is now 80% of total ad revenue.”

Shares in the social networking giant closed at $109.11 on Thursday, valuing the company at approximately $308.6 billion.

Jefferies analysts wrote: “FB has built a remarkable ad platform that enables marketers of all stripes to serve targeted ads to nearly every consumer on the planet,”

Goldman Sachs analysts said in a client note: “We believe Facebook is well positioned to increase its share of digital ad spend as well as to help grow the overall category given its reach and effectiveness for advertisers,”


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