MENLO PARK, Calif.,
Jan. 29, 2014 /PRNewswire/ -- Facebook, Inc. (NASDAQ: FB)
today reported financial results for the fourth quarter and full
year ended December 31, 2013.
"It was a great end to the year for Facebook," said Mark Zuckerberg, Facebook founder and CEO.
"We're looking forward to our next decade and to helping connect
the rest of the world."
Fourth Quarter and Full Year 2013 Financial
Summary
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
In millions,
except percentages and per share amounts
|
2012
|
|
2013
|
|
2012
|
|
2013
|
Revenue
|
$ 1,585
|
|
$ 2,585
|
|
$ 5,089
|
|
$ 7,872
|
Income from
Operations
|
|
|
|
|
|
|
|
GAAP
|
$ 523
|
|
$ 1,133
|
|
$ 538
|
|
$ 2,804
|
Non-GAAP
|
$ 736
|
|
$ 1,459
|
|
$ 2,261
|
|
$ 3,803
|
Operating
Margin
|
|
|
|
|
|
|
|
GAAP
|
33%
|
|
44%
|
|
11%
|
|
36%
|
Non-GAAP
|
46%
|
|
56%
|
|
44%
|
|
48%
|
Net
Income
|
|
|
|
|
|
|
|
GAAP
|
$ 64
|
|
$ 523
|
|
$ 53
|
|
$ 1,500
|
Non-GAAP
|
$ 426
|
|
$ 780
|
|
$ 1,317
|
|
$ 2,202
|
Diluted Earnings
per Share (EPS)
|
|
|
|
|
|
|
|
GAAP
|
$ 0.03
|
|
$ 0.20
|
|
$ 0.01
|
|
$ 0.60
|
Non-GAAP
|
$ 0.17
|
|
$ 0.31
|
|
$ 0.53
|
|
$ 0.88
|
Full Year 2013 Business Highlights
- Revenue for the full year 2013 was $7.87
billion, an increase of 55% year-over-year.
- Income from operations for the full year 2013 was $2.80 billion.
- Net income for the full year 2013 was $1.50 billion.
- Free cash flow for the full year of 2013 was $2.85 billion.
- Daily active users (DAUs) were 757 million on average for
December 2013, an increase of 22%
year-over-year.
- Mobile DAUs were 556 million on average for December 2013, an increase of 49%
year-over-year.
- Monthly active users (MAUs) were 1.23 billion as of
December 31, 2013, an increase of 16% year-over-year.
- Mobile MAUs were 945 million as of December 31, 2013, an
increase of 39% year-over-year.
Fourth Quarter 2013 Financial Highlights
Revenue – Revenue for the fourth quarter of 2013 totaled
$2.59 billion, an increase of 63%,
compared with $1.59 billion in the
fourth quarter of 2012.
- Revenue from advertising was $2.34
billion, a 76% increase from the same quarter last
year.
- Mobile advertising revenue represented approximately 53% of
advertising revenue for the fourth quarter of 2013, up from
approximately 23% of advertising revenue in the fourth quarter of
2012.
- Payments and other fees revenue was $241
million for the fourth quarter of 2013.
Costs and expenses – GAAP costs and expenses for the
fourth quarter of 2013 were $1.45
billion, an increase of 37% from the fourth quarter of 2012,
driven primarily by increased headcount and infrastructure expense.
Excluding share-based compensation and related payroll tax
expenses, non-GAAP costs and expenses were $1.13 billion in the fourth quarter of 2013, up
33% compared to $849 million for the
fourth quarter of 2012.
Income from operations – For the fourth quarter of 2013,
GAAP income from operations was $1.13
billion, compared to $523
million in the fourth quarter of 2012. Excluding share-based
compensation and related payroll tax expenses, non-GAAP income from
operations for the fourth quarter of 2013 was $1.46 billion, up 98% compared to $736 million for the fourth quarter of 2012.
Operating margin – GAAP operating margin was 44% for the
fourth quarter of 2013, compared to 33% in the fourth quarter of
2012. Excluding share-based compensation and related payroll tax
expenses, non-GAAP operating margin was 56% for the fourth quarter
of 2013, compared to 46% for the fourth quarter of 2012.
Provision for income taxes – GAAP income tax expense for
the fourth quarter of 2013 was $607
million, representing a 54% effective tax rate. Excluding
share-based compensation and related payroll tax expenses, the
non-GAAP effective tax rate would have been approximately 46%.
Net income and EPS – For the fourth quarter of 2013, GAAP
net income was $523 million, compared
to $64 million for the fourth quarter
of 2012. Excluding share-based compensation and related payroll tax
expenses and income tax adjustments, non-GAAP net income for the
fourth quarter of 2013 was $780
million, up 83% compared to $426
million for the fourth quarter of 2012. GAAP diluted EPS was
$0.20 in the fourth quarter of 2013,
compared to $0.03 in the fourth
quarter of 2012. Excluding share-based compensation and related
payroll tax expenses and income tax adjustments, non-GAAP diluted
EPS for the fourth quarter of 2013 was $0.31, up 82% compared to $0.17 in the fourth quarter of 2012.
Capital expenditures – Capital expenditures for the
fourth quarter of 2013 were $483
million.
Cash and marketable securities – Cash and marketable
securities were $11.45 billion at the
end of 2013.
Webcast and Conference Call Information
Facebook will host a conference call to discuss the results at
2 p.m. PT / 5
p.m. ET today. The live webcast can be accessed at the
Facebook Investor Relations website at investor.fb.com, along with
the company's earnings press release, financial tables and slide
presentation. Facebook uses the investor.fb.com website as a means
of disclosing material non-public information and for complying
with its disclosure obligations under Regulation FD.
Following the call, a replay will be available at the same
website. A telephonic replay will be available for one week
following the conference call at + 1 (404) 537-3406 or + 1 (855)
859-2056, conference ID 25168884.
About Facebook
Founded in 2004, Facebook's mission is to give people the power
to share and make the world more open and connected. People use
Facebook to stay connected with friends and family, to discover
what's going on in the world, and to share and express what matters
to them.
Contacts
Investors:
Deborah Crawford
investor@fb.com / investor.fb.com
Press:
Tucker Bounds
press@fb.com / newsroom.fb.com
Forward Looking Statements
This press release contains forward-looking statements regarding
our future business expectations, which are subject to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are only predictions and
may differ materially from actual results due to a variety of
factors including: our ability to retain or increase users and
engagement levels; our reliance on advertising revenue; our ability
to continue to monetize our mobile products; risks associated with
new product development and their introduction as well as other new
business initiatives; our emphasis on user growth and engagement
and the user experience over short-term financial results;
competition; litigation; privacy and regulatory concerns; security
breaches; and our ability to manage growth and
geographically-dispersed operations. These and other potential
risks and uncertainties that could cause actual results to differ
from the results predicted are more fully detailed under the
caption "Risk Factors" in our Quarterly Report on Form 10-Q filed
with the SEC on November 1, 2013,
which is available on our Investor Relations website at
investor.fb.com and on the SEC website at www.sec.gov. Additional
information will also be set forth in our Annual Report on Form
10-K for the full year ended December 31, 2013. In addition,
please note that the date of this press release is January 29,
2014, and any forward-looking statements contained herein are based
on assumptions that we believe to be reasonable as of this date. We
undertake no obligation to update these statements as a result of
new information or future events.
Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with GAAP, we use the
following non-GAAP financial measures: revenue excluding foreign
exchange effect and advertising revenue excluding foreign exchange
effect, non-GAAP costs and expenses, non-GAAP income from
operations; non-GAAP net income; non-GAAP diluted shares; non-GAAP
diluted earnings per share; non-GAAP operating margin; non-GAAP
effective tax rate; and free cash flow. The presentation of these
financial measures is not intended to be considered in isolation or
as a substitute for, or superior to, financial information prepared
and presented in accordance with GAAP. Investors are cautioned that
there are material limitations associated with the use of non-GAAP
financial measures as an analytical tool. In particular, many of
the adjustments to our GAAP financial measures reflect the
exclusion of items, specifically share-based compensation expense
and payroll tax related to share-based compensation expense, and
the related income tax effects, that are recurring and will be
reflected in our financial results for the foreseeable future. In
addition, these measures may be different from non-GAAP financial
measures used by other companies, limiting their usefulness for
comparison purposes. We compensate for these limitations by
providing specific information regarding the GAAP amounts excluded
from these non-GAAP financial measures.
We believe these non-GAAP financial measures provide investors
with useful supplemental information about the financial
performance of our business, enable comparison of financial results
between periods where certain items may vary independent of
business performance, and allow for greater transparency with
respect to key metrics used by management in operating our
business.
We exclude the following items from one or more of our non-GAAP
financial measures:
Share-based compensation expense. We exclude share-based
compensation expense because we believe that the non-GAAP financial
measures excluding this item provide meaningful supplemental
information regarding operational performance. In particular,
because of varying available valuation methodologies, subjective
assumptions and the variety of award types that companies can use
under FASB ASC Topic 718, we believe that providing non-GAAP
financial measures that exclude this expense allows investors the
ability to make more meaningful comparisons between our operating
results and those of other companies. Accordingly, we believe that
excluding this expense provides investors and management with
greater visibility to the underlying performance of our business
operations, facilitates comparison of our results with other
periods, and may also facilitate comparison with the results of
other companies in our industry.
Payroll tax expense related to share-based compensation.
We exclude payroll tax expense related to share-based compensation
expense because, without excluding these tax expenses, investors
would not see the full effect that excluding share-based
compensation expense had on our operating results. These expenses
are tied to the exercise or vesting of underlying equity awards and
the price of our common stock at the time of vesting or exercise,
which factors may vary from period to period independent of the
operating performance of our business. Similar to share-based
compensation expense, we believe that excluding this payroll tax
expense provides investors and management with greater visibility
to the underlying performance of our business operations and
facilitates comparison with other periods as well as the results of
other companies.
Income tax effect of share-based compensation and related
payroll tax expenses. We believe excluding the income tax
effect of non-GAAP adjustments assists investors and management in
understanding the tax provision related to those adjustments and
provides useful supplemental information regarding the underlying
performance of our business operations.
Assumed preferred stock conversion. As a result of our
IPO in May 2012, all outstanding
shares of preferred stock were automatically converted into shares
of Class B common stock. Consequently, non-GAAP diluted shares and
earnings per share for the year ended December 31, 2012 have
been calculated assuming this conversion for periods prior to the
IPO, which we believe facilitates comparison between periods.
Dilutive equity awards excluded from GAAP. In our
calculation of non-GAAP weighted average shares used to
compute earnings per share attributable to Class A and Class B
common stockholders, we include unvested RSUs for the year ended
December 31, 2012, the number of which is substantial due
to the terms of RSUs granted prior to 2011. We believe including
these awards facilitates comparison between periods.
Foreign exchange effect on revenue. We translate revenue
for the current quarter and full year ended December 31, 2013
using prior year exchange rates, which we believe is a useful
metric that facilitates comparison to our historical
performance.
Purchases of property and equipment; Property and equipment
acquired under capital leases. We subtract both purchases of
property and equipment and property and equipment acquired under
capital leases in our calculation of free cash flow because we
believe that these two items collectively represent the amount of
property and equipment we need to procure to support our business,
regardless of whether we finance such property or equipment with a
capital lease. We believe that this methodology can provide useful
supplemental information to help investors better understand
underlying trends in our business.
For more information on our non-GAAP financial measures and a
reconciliation of such measures to the nearest GAAP measure, please
see the "Reconciliation of Non-GAAP Results to Nearest GAAP
Measures" table in this press release.
FACEBOOK,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(In millions,
except for per share amounts)
|
(Unaudited)
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
Revenue
|
$ 1,585
|
|
$ 2,585
|
|
$ 5,089
|
|
$ 7,872
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Cost of
revenue
|
398
|
|
491
|
|
1,364
|
|
1,875
|
Research
and development
|
297
|
|
408
|
|
1,399
|
|
1,415
|
Marketing and sales
|
193
|
|
292
|
|
896
|
|
997
|
General
and administrative
|
174
|
|
261
|
|
892
|
|
781
|
Total
costs and expenses
|
1,062
|
|
1,452
|
|
4,551
|
|
5,068
|
Income from
operations
|
523
|
|
1,133
|
|
538
|
|
2,804
|
Interest and other
income (expense), net:
|
|
|
|
|
|
|
|
Interest
expense
|
(16)
|
|
(7)
|
|
(51)
|
|
(56)
|
Other
income (expense), net
|
(2)
|
|
4
|
|
7
|
|
6
|
Income before
provision for income taxes
|
505
|
|
1,130
|
|
494
|
|
2,754
|
Provision for income
taxes
|
441
|
|
607
|
|
441
|
|
1,254
|
Net
income
|
$
64
|
|
$
523
|
|
$
53
|
|
$ 1,500
|
Less: Net income
attributable to participating securities
|
-
|
|
3
|
|
21
|
|
9
|
Net income
attributable to Class A and Class B common
stockholders
|
$
64
|
|
$
520
|
|
$
32
|
|
$ 1,491
|
Earnings per share
attributable to Class A and Class B common
stockholders:
|
|
|
|
|
|
|
|
Basic
|
$
0.03
|
|
$
0.21
|
|
$
0.02
|
|
$
0.62
|
Diluted
|
$
0.03
|
|
$
0.20
|
|
$
0.01
|
|
$
0.60
|
Weighted average
shares used to compute earnings per share attributable to
Class A and Class B common stockholders:
|
|
|
|
|
|
|
|
Basic
|
2,368
|
|
2,458
|
|
2,006
|
|
2,420
|
Diluted
|
2,506
|
|
2,558
|
|
2,166
|
|
2,517
|
Share-based
compensation expense included in costs and
expenses:
|
|
|
|
|
|
|
|
Cost of
revenue
|
$
9
|
|
$
11
|
|
$
88
|
|
$
42
|
Research
and development
|
124
|
|
172
|
|
843
|
|
604
|
Marketing and sales
|
27
|
|
42
|
|
306
|
|
133
|
General
and administrative
|
24
|
|
48
|
|
335
|
|
127
|
Total
share-based compensation expense
|
$
184
|
|
$
273
|
|
$ 1,572
|
|
$
906
|
Payroll tax
expenses related to share-based compensation included in costs and
expenses:
|
|
|
|
|
|
|
|
Cost of
revenue
|
$
2
|
|
$
-
|
|
$
5
|
|
$
1
|
Research
and development
|
16
|
|
4
|
|
53
|
|
30
|
Marketing and sales
|
4
|
|
1
|
|
20
|
|
8
|
General
and administrative
|
7
|
|
48
|
|
73
|
|
54
|
Total
payroll tax expenses related to share-based compensation
|
$
29
|
|
$
53
|
|
$
151
|
|
$
93
|
FACEBOOK,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
millions)
|
(Unaudited)
|
|
December 31,
2012
|
|
December 31,
2013
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
2,384
|
|
$
3,323
|
|
Marketable
securities
|
7,242
|
|
8,126
|
|
Accounts
receivable
|
719
|
|
1,109
|
|
Income tax
refundable
|
451
|
|
51
|
|
Prepaid expenses and
other current assets
|
471
|
|
461
|
|
|
Total current
assets
|
11,267
|
|
13,070
|
Property and
equipment, net
|
2,391
|
|
2,882
|
Goodwill and
intangible assets, net
|
1,388
|
|
1,722
|
Other
assets
|
57
|
|
221
|
Total
assets
|
$
15,103
|
|
$
17,895
|
|
|
|
|
Liabilities and
stockholders' equity
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
65
|
|
$
87
|
|
Developer partners
payable
|
169
|
|
181
|
|
Accrued expenses and
other current liabilities
|
423
|
|
555
|
|
Deferred revenue and
deposits
|
30
|
|
38
|
|
Current portion of
capital lease obligations
|
365
|
|
239
|
|
|
Total current
liabilities
|
1,052
|
|
1,100
|
|
|
|
|
Capital lease
obligations, less current portion
|
491
|
|
237
|
Long-term
debt
|
1,500
|
|
—
|
Other
liabilities
|
305
|
|
1,088
|
|
|
Total
liabilities
|
3,348
|
|
2,425
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Common stock and
additional paid-in capital
|
10,094
|
|
12,297
|
|
Accumulated other
comprehensive income
|
2
|
|
14
|
|
Retained
earnings
|
1,659
|
|
3,159
|
|
|
Total stockholders'
equity
|
11,755
|
|
15,470
|
Total liabilities
and stockholders' equity
|
$
15,103
|
|
$
17,895
|
FACEBOOK,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
millions)
|
(Unaudited)
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
Net income
|
$
64
|
|
$
523
|
|
$
53
|
|
$ 1,500
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
224
|
|
274
|
|
649
|
|
1,011
|
Lease abandonment
expense
|
1
|
|
9
|
|
8
|
|
117
|
Loss on disposal or
write-off of equipment
|
7
|
|
17
|
|
15
|
|
56
|
Share-based
compensation
|
184
|
|
273
|
|
1,572
|
|
906
|
Deferred income
taxes
|
248
|
|
(58)
|
|
(186)
|
|
(37)
|
Tax benefit from
share-based award activity
|
179
|
|
325
|
|
1,033
|
|
602
|
Excess tax benefit
from share-based award activity
|
(179)
|
|
(324)
|
|
(1,033)
|
|
(609)
|
Changes in
assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
(80)
|
|
(233)
|
|
(170)
|
|
(378)
|
Income tax
refundable
|
116
|
|
(44)
|
|
(451)
|
|
400
|
Prepaid expenses and
other current assets
|
(38)
|
|
(34)
|
|
(14)
|
|
(45)
|
Other
assets
|
2
|
|
(107)
|
|
2
|
|
(142)
|
Accounts
payable
|
(19)
|
|
43
|
|
1
|
|
26
|
Developer partners
payable
|
14
|
|
10
|
|
(2)
|
|
12
|
Accrued expenses and
other current liabilities
|
(3)
|
|
67
|
|
152
|
|
(38)
|
Deferred revenue and
deposits
|
(55)
|
|
2
|
|
(60)
|
|
8
|
Other
liabilities
|
16
|
|
488
|
|
43
|
|
833
|
Net cash
provided by operating activities
|
681
|
|
1,231
|
|
1,612
|
|
4,222
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
Purchases of
property and equipment
|
(198)
|
|
(483)
|
|
(1,235)
|
|
(1,362)
|
Purchases of
marketable securities
|
(1,717)
|
|
(3,069)
|
|
(10,307)
|
|
(7,433)
|
Sales of
marketable securities
|
1,529
|
|
555
|
|
2,100
|
|
2,988
|
Maturities of
marketable securities
|
920
|
|
609
|
|
3,333
|
|
3,563
|
Investments in
non-marketable equity securities
|
1
|
|
-
|
|
(2)
|
|
(1)
|
Acquisitions
of businesses, net of cash acquired, and purchases of intangible
assets
|
-
|
|
(131)
|
|
(911)
|
|
(368)
|
Change in
restricted cash and deposits
|
-
|
|
(15)
|
|
(2)
|
|
(11)
|
Net cash
provided by (used in) investing activities
|
535
|
|
(2,534)
|
|
(7,024)
|
|
(2,624)
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
Net proceeds
from issuance of common stock
|
-
|
|
1,478
|
|
6,760
|
|
1,478
|
Taxes paid
related to net share settlement of equity awards
|
(2,862)
|
|
(183)
|
|
(2,862)
|
|
(889)
|
Proceeds from
exercise of stock options
|
8
|
|
6
|
|
17
|
|
26
|
Proceeds from
long-term debt, net of issuance cost
|
1,496
|
|
-
|
|
1,496
|
|
-
|
Repayment of
long-term debt
|
-
|
|
-
|
|
-
|
|
(1,500)
|
Proceeds from
sale and lease-back transactions
|
-
|
|
-
|
|
205
|
|
-
|
Principal
payments on capital lease obligations
|
(135)
|
|
(100)
|
|
(366)
|
|
(391)
|
Excess tax
benefit from share-based award activity
|
179
|
|
324
|
|
1,033
|
|
609
|
Net cash
(used in) provided by financing activities
|
(1,314)
|
|
1,525
|
|
6,283
|
|
(667)
|
Effect of exchange
rate changes on cash and cash equivalents
|
4
|
|
1
|
|
1
|
|
8
|
Net (decrease)
increase in cash and cash equivalents
|
(94)
|
|
223
|
|
872
|
|
939
|
Cash and cash
equivalents at beginning of period
|
2,478
|
|
3,100
|
|
1,512
|
|
2,384
|
Cash and cash
equivalents at end of period
|
$
2,384
|
|
$ 3,323
|
|
$
2,384
|
|
$ 3,323
|
Supplemental cash
flow data
|
|
|
|
|
|
|
|
Cash paid
during the period for:
|
|
|
|
|
|
|
|
Interest
|
$
8
|
|
$
5
|
|
$
38
|
|
$
38
|
Income
taxes
|
$
-
|
|
$
21
|
|
$
184
|
|
$
82
|
Cash received during
the period for:
|
|
|
|
|
|
|
|
Refund of income
taxes
|
$
131
|
|
$
2
|
|
$
131
|
|
$
421
|
Non-cash
investing and financing activities:
|
|
|
|
|
|
|
|
Net change in
accounts payable and accrued expenses and other current liabilities
related to property and equipment additions
|
$
40
|
|
$
22
|
|
$
(40)
|
|
$
53
|
Property and
equipment acquired under capital leases
|
$
89
|
|
$
-
|
|
$
340
|
|
$
11
|
Fair value of shares
issued related to acquisitions of businesses and other
assets
|
$
-
|
|
$
-
|
|
$
274
|
|
$
77
|
Reconciliation of
Non-GAAP Results to Nearest GAAP Measures
|
(In millions,
except percentages and per share amounts)
|
(Unaudited)
|
|
Three Months Ended
December 31,
|
|
Year Ended
December 31,
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
GAAP
revenue
|
$ 1,585
|
|
$ 2,585
|
|
$
5,089
|
|
$ 7,872
|
Foreign
exchange effect on 2013 revenue using 2012 rates
|
|
|
2
|
|
|
|
22
|
Revenue excluding
foreign exchange effect
|
|
|
$ 2,587
|
|
|
|
$ 7,894
|
GAAP revenue
year-over-year change %
|
|
|
63%
|
|
|
|
55%
|
Revenue excluding
foreign exchange effect year-over-year change %
|
|
|
63%
|
|
|
|
55%
|
GAAP advertising
revenue
|
$ 1,329
|
|
$ 2,344
|
|
$
4,279
|
|
$ 6,986
|
Foreign
exchange effect on 2013 advertising revenue using 2012
rates
|
|
|
2
|
|
|
|
22
|
Advertising revenue
excluding foreign exchange effect
|
|
|
$ 2,346
|
|
|
|
$ 7,008
|
GAAP advertising
revenue year-over-year change %
|
|
|
76%
|
|
|
|
63%
|
Advertising revenue
excluding foreign exchange effect year-over-year change
%
|
|
|
77%
|
|
|
|
64%
|
GAAP costs and
expenses
|
$ 1,062
|
|
$ 1,452
|
|
$
4,551
|
|
$ 5,068
|
Share-based compensation expense
|
(184)
|
|
(273)
|
|
(1,572)
|
|
(906)
|
Payroll
tax expenses related to share-based compensation
|
(29)
|
|
(53)
|
|
(151)
|
|
(93)
|
Non-GAAP costs and
expenses
|
$
849
|
|
$ 1,126
|
|
$
2,828
|
|
$ 4,069
|
GAAP income from
operations
|
$
523
|
|
$ 1,133
|
|
$
538
|
|
$ 2,804
|
Share-based
compensation expense
|
184
|
|
273
|
|
1,572
|
|
906
|
Payroll
tax expenses related to share-based compensation
|
29
|
|
53
|
|
151
|
|
93
|
Non-GAAP income from
operations
|
$
736
|
|
$ 1,459
|
|
$
2,261
|
|
$ 3,803
|
GAAP net
income
|
$
64
|
|
$
523
|
|
$
53
|
|
$ 1,500
|
Share-based compensation expense
|
184
|
|
273
|
|
1,572
|
|
906
|
Payroll
tax expenses related to share-based compensation
|
29
|
|
53
|
|
151
|
|
93
|
Income
tax adjustments
|
149
|
|
(69)
|
|
(459)
|
|
(297)
|
Non-GAAP net
income
|
$
426
|
|
$
780
|
|
$
1,317
|
|
$ 2,202
|
GAAP diluted
shares
|
2,506
|
|
2,558
|
|
2,166
|
|
2,517
|
Assumed
preferred stock conversion1
|
-
|
|
-
|
|
203
|
|
-
|
Dilutive
equity awards excluded from GAAP1
|
-
|
|
-
|
|
110
|
|
-
|
Non-GAAP diluted
shares
|
2,506
|
|
2,558
|
|
2,479
|
|
2,517
|
GAAP diluted earnings
per share
|
$
0.03
|
|
$
0.20
|
|
$
0.01
|
|
$
0.60
|
Net
income attributable to participating securities
|
-
|
|
-
|
|
0.01
|
|
-
|
Non-GAAP
adjustments to net income
|
0.14
|
|
0.11
|
|
0.59
|
|
0.28
|
Non-GAAP
adjustments to diluted shares
|
-
|
|
-
|
|
(0.08)
|
|
-
|
Non-GAAP diluted
earnings per share
|
$
0.17
|
|
$
0.31
|
|
$
0.53
|
|
$
0.88
|
GAAP operating
margin
|
33%
|
|
44%
|
|
11%
|
|
36%
|
Share-based compensation expense
|
12%
|
|
11%
|
|
31%
|
|
12%
|
Payroll
tax expenses related to share-based compensation
|
2%
|
|
2%
|
|
3%
|
|
1%
|
Non-GAAP operating
margin
|
46%
|
|
56%
|
|
44%
|
|
48%
|
GAAP income before
provision for income taxes
|
$
505
|
|
$ 1,130
|
|
$
494
|
|
$ 2,754
|
GAAP provision for
income taxes
|
441
|
|
607
|
|
441
|
|
1,254
|
GAAP effective tax
rate
|
87%
|
|
54%
|
|
89%
|
|
46%
|
GAAP income before
provision for income taxes
|
$
505
|
|
$ 1,130
|
|
$
494
|
|
$ 2,754
|
Share-based
compensation and related payroll tax expenses
|
213
|
|
326
|
|
1,723
|
|
999
|
Non-GAAP income
before provision for income taxes
|
$
718
|
|
$ 1,456
|
|
$
2,217
|
|
$ 3,753
|
Non-GAAP provision
for income taxes
|
292
|
|
676
|
|
900
|
|
1,551
|
Non-GAAP effective
tax rate
|
41%
|
|
46%
|
|
41%
|
|
41%
|
Net cash provided by
operating activities
|
$
681
|
|
$ 1,231
|
|
$
1,612
|
|
$ 4,222
|
Purchases of property and equipment
|
(198)
|
|
(483)
|
|
(1,235)
|
|
(1,362)
|
Property
and equipment acquired under capital leases
|
(89)
|
|
-
|
|
(340)
|
|
(11)
|
Free cash
flow
|
$
394
|
|
$
748
|
|
$
37
|
|
$ 2,849
|
1Gives
effect to assumed preferred stock conversion and other dilutive
equity awards prior to our IPO for comparability
|
SOURCE Facebook, Inc.