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eMarketing Egypt » Facebook Reported Impressive Q4 Results

Facebook Reported Impressive Q4 Results

Facebook reported its Q4 numbers yesterday afternoon. It beat Wall Street analysts’ revenue and profit expectations; revenue growth continued to accelerate – grew 40% y/y, up from 32.80% y/y growth last quarter. Operating margins improved, as well. Despite the good news, the stock dropped 10% as soon as the numbers came out.

 

Facebook reported its Q4 numbers yesterday afternoon. It beat Wall Street analysts’ revenue and profit expectations; revenue growth continued to accelerate – grew 40% y/y, up from 32.80% y/y growth last quarter. Operating margins improved, as well. Despite the good news, the stock dropped 10% as soon as the numbers came out.


Facebook hosted an earnings call, below are some selected notes:
> Zuckerberg: “Today there is no argument: Facebook is a mobile company”; 23% of ad revenue is from mobile, up from 0% last year.
> Zuckerberg said  there is a big opportunity to make ads better through
1) Targeting and relevance
2) Better ad products that aren’t just about links and images, he added that Facebook ads will have more kinds of media, sounds and may be video.
> Facebook’s three priorities:
1) Building products and tools that create value for all marketers.
2) Direct developers proving that value.
3) Taking advantage of mobile.

Some interesting figures
●  Ad revenue grew 41%.
● 23% of ad revenue came from mobile, up from 14% in Q3.
● Ad revenue per user grew 27% in US and only 7% in Europe;
(this due to the fact that Facebook is expanding into poorer countries in Europe and that’s bringing down the average).
● Number of local business advertisers doubled in 2x in 2012

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