Add a note by highlighting text or Replying to an existing note.
Add a note by highlighting text or Replying to an existing note.
Three Months Ended March 31, |
Year-over-Year % Change |
|||||||||
In millions, except percentages and per share amounts |
2019 |
2018 |
||||||||
Revenue: |
||||||||||
Advertising |
$ |
14,912 |
$ |
11,795 |
26 |
% |
||||
Payments and other fees |
165 |
171 |
(4 |
)% |
||||||
Total revenue |
15,077 |
11,966 |
26 |
% |
||||||
Total costs and expenses* |
11,760 |
6,517 |
80 |
% |
||||||
Income from operations* |
$ |
3,317 |
$ |
5,449 |
(39 |
)% |
||||
Operating margin*
|
22 |
% |
46 |
% |
||||||
Provision for income taxes |
$ |
1,053 |
||||||||
Effective tax rate*
|
30 |
% |
||||||||
Net income* |
$ |
2,429 |
$ |
4,988 |
(51 |
)% |
||||
Diluted earnings per share (EPS)* |
$ |
0.85 |
$ |
1.69 |
(50 |
)% |
• |
Daily active users (DAUs) – DAUs were 1.56 billion on average for March 2019, an increase of 8% year-over-year.
|
• |
Monthly active users (MAUs) – MAUs were 2.38 billion as of March 31, 2019, an increase of 8% year-over-year.
|
• |
Mobile advertising revenue – Mobile advertising revenue represented approximately 93% of advertising revenue for the first quarter of 2019, up from approximately 91% of advertising revenue in the first quarter of 2018.
|
• |
Capital expenditures – Capital expenditures, including principal payments on finance leases, were $3.96 billion for the first quarter of 2019.
|
• |
Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $45.24 billion at the end of the first quarter of 2019.
|
• |
Headcount – Headcount was 37,773 as of March 31, 2019, an increase of 36% year-over-year.
|
FACEBOOK, INC. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||
(In millions, except for per share amounts) | |||||||
(Unaudited) | |||||||
Three Months Ended March 31, |
|||||||
2019* |
2018 |
||||||
Revenue |
$ |
15,077 |
$ |
11,966 |
|||
Costs and expenses: |
|||||||
Cost of revenue |
2,816 |
1,927 |
|||||
Research and development |
2,860 |
2,238 |
|||||
Marketing and sales |
2,020 |
1,595 |
|||||
General and administrative |
4,064 |
757 |
|||||
Total costs and expenses |
11,760 |
6,517 |
|||||
Income from operations |
3,317 |
5,449 |
|||||
Interest and other income, net |
165 |
161 |
|||||
Income before provision for income taxes |
3,482 |
5,610 |
|||||
Provision for income taxes |
1,053 |
622 |
|||||
Net income |
$ |
2,429 |
$ |
4,988 |
|||
Less: Net income attributable to participating securities |
— |
1 |
|||||
Net income attributable to Class A and Class B common stockholders |
$ |
2,429 |
$ |
4,987 |
|||
Earnings per share attributable to Class A and Class B common stockholders: |
|||||||
Basic |
$ |
0.85 |
$ |
1.72 |
|||
Diluted |
$ |
0.85 |
$ |
1.69 |
|||
Weighted average shares used to compute earnings per share attributable to Class A and Class B common stockholders: |
|||||||
Basic |
2,856 |
2,906 |
|||||
Diluted |
2,869 |
2,945 |
|||||
Share-based compensation expense included in costs and expenses: |
|||||||
Cost of revenue |
$ |
87 |
$ |
56 |
|||
Research and development |
723 |
718 |
|||||
Marketing and sales |
113 |
109 |
|||||
General and administrative |
87 |
72 |
|||||
Total share-based compensation expense |
$ |
1,010 |
$ |
955 |
FACEBOOK, INC. | |||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(In millions) | |||||||||
(Unaudited) | |||||||||
March 31, 2019 |
December 31, 2018 |
||||||||
Assets |
|||||||||
Current assets: |
|||||||||
Cash and cash equivalents |
$ |
11,076 |
$ |
10,019 |
|||||
Marketable securities |
34,167 |
31,095 |
|||||||
Accounts receivable, net of allowances of $216 and $229 as of March 31, 2019 and December 31, 2018, respectively |
6,475 |
7,587 |
|||||||
Prepaid expenses and other current assets |
1,582 |
1,779 |
|||||||
Total current assets |
53,300 |
50,480 |
|||||||
Property and equipment, net |
27,345 |
24,683 |
|||||||
Operating lease right-of-use assets, net |
6,747 |
— |
|||||||
Intangible assets, net |
1,150 |
1,294 |
|||||||
Goodwill |
18,333 |
18,301 |
|||||||
Other assets |
2,602 |
2,576 |
|||||||
Total assets |
$ |
109,477 |
$ |
97,334 |
|||||
Liabilities and stockholders' equity |
|||||||||
Current liabilities: |
|||||||||
Accounts payable |
$ |
604 |
$ |
820 |
|||||
Partners payable |
537 |
541 |
|||||||
Operating lease liabilities, current |
645 |
— |
|||||||
Accrued expenses and other current liabilities |
7,980 |
5,509 |
|||||||
Deferred revenue and deposits |
142 |
147 |
|||||||
Total current liabilities |
9,908 |
7,017 |
|||||||
Operating lease liabilities, non-current |
6,565 |
— |
|||||||
Other liabilities |
6,488 |
6,190 |
|||||||
Total liabilities |
22,961 |
13,207 |
|||||||
Commitments and contingencies |
|||||||||
Stockholders' equity: |
|||||||||
Common stock and additional paid-in capital |
43,533 |
42,906 |
|||||||
Accumulated other comprehensive loss |
(781 |
) |
(760 |
) |
|||||
Retained earnings |
43,764 |
41,981 |
|||||||
Total stockholders' equity |
86,516 |
84,127 |
|||||||
Total liabilities and stockholders' equity |
$ |
109,477 |
$ |
97,334 |
FACEBOOK, INC. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(In millions) | |||||||
(Unaudited) | |||||||
Three Months Ended March 31, |
|||||||
2019 |
2018 |
||||||
Cash flows from operating activities |
|||||||
Net income |
$ |
2,429 |
$ |
4,988 |
|||
Adjustments to reconcile net income to net cash provided by operating activities: |
|||||||
Depreciation and amortization |
1,355 |
949 |
|||||
Share-based compensation |
1,010 |
955 |
|||||
Deferred income taxes |
183 |
(47 |
) |
||||
Other |
6 |
8 |
|||||
Changes in assets and liabilities: |
|||||||
Accounts receivable |
1,070 |
788 |
|||||
Prepaid expenses and other current assets |
84 |
(365 |
) |
||||
Other assets |
41 |
22 |
|||||
Operating lease right-of-use assets, net |
(1,190 |
) |
— |
||||
Accounts payable |
(96 |
) |
1 |
||||
Partners payable |
(1 |
) |
2 |
||||
Accrued expenses and other current liabilities |
3,154 |
707 |
|||||
Deferred revenue and deposits |
(4 |
) |
(5 |
) |
|||
Operating lease liabilities, non-current |
1,083 |
— |
|||||
Other liabilities |
184 |
(143 |
) |
||||
Net cash provided by operating activities |
9,308 |
7,860 |
|||||
Cash flows from investing activities |
|||||||
Purchases of property and equipment, net |
(3,837 |
) |
(2,812 |
) |
|||
Purchases of marketable securities |
(6,603 |
) |
(4,022 |
) |
|||
Sales of marketable securities |
1,512 |
4,330 |
|||||
Maturities of marketable securities |
2,210 |
1,267 |
|||||
Other investing activities, net |
(50 |
) |
(50 |
) |
|||
Net cash used in investing activities |
(6,768 |
) |
(1,287 |
) |
|||
Cash flows from financing activities |
|||||||
Taxes paid related to net share settlement of equity awards |
(512 |
) |
(832 |
) |
|||
Repurchases of Class A common stock |
(613 |
) |
(1,774 |
) |
|||
Principal payments on finance leases |
(125 |
) |
— |
||||
Net change in overdraft in cash pooling entities |
(177 |
) |
— |
||||
Other financing activities, net |
4 |
3 |
|||||
Net cash used in financing activities |
(1,423 |
) |
(2,603 |
) |
|||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash |
(44 |
) |
36 |
||||
Net increase in cash, cash equivalents, and restricted cash |
1,073 |
4,006 |
|||||
Cash, cash equivalents, and restricted cash at beginning of the period |
10,124 |
8,204 |
|||||
Cash, cash equivalents, and restricted cash at end of the period |
$ |
11,197 |
$ |
12,210 |
|||
Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets |
|||||||
Cash and cash equivalents |
$ |
11,076 |
$ |
12,082 |
|||
Restricted cash, included in prepaid expenses and other current assets |
10 |
14 |
|||||
Restricted cash, included in other assets |
111 |
114 |
|||||
Total cash, cash equivalents, and restricted cash |
$ |
11,197 |
$ |
12,210 |
FACEBOOK, INC. | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(In millions) | |||||||
(Unaudited) | |||||||
Three Months Ended March 31, |
|||||||
2019 |
2018 |
||||||
Supplemental cash flow data |
|||||||
Cash paid during the period for: |
|||||||
Interest |
$ |
2 |
$ |
— |
|||
Income taxes, net |
$ |
682 |
$ |
736 |
|||
Non-cash investing activities: |
|||||||
Net change in prepaids and liabilities related to property and equipment |
$ |
(314 |
) |
$ |
429 |
||
Accrued property and equipment |
$ |
1,617 |
$ |
1,291 |
Reconciliation of GAAP to Non-GAAP Results | |||||||
(In millions, except percentages) | |||||||
(Unaudited) | |||||||
Three Months Ended March 31, |
|||||||
2019 |
2018 |
||||||
GAAP revenue |
$ |
15,077 |
$ |
11,966 |
|||
Foreign exchange effect on 2019 revenue using 2018 rates |
503 |
||||||
Revenue excluding foreign exchange effect |
$ |
15,580 |
|||||
GAAP revenue year-over-year change % |
26 |
% |
|||||
Revenue excluding foreign exchange effect year-over-year change % |
30 |
% |
|||||
GAAP advertising revenue |
$ |
14,912 |
$ |
11,795 |
|||
Foreign exchange effect on 2019 advertising revenue using 2018 rates |
503 |
||||||
Advertising revenue excluding foreign exchange effect |
$ |
15,415 |
|||||
GAAP advertising revenue year-over-year change % |
26 |
% |
|||||
Advertising revenue excluding foreign exchange effect year-over-year change % |
31 |
% |
|||||
Net cash provided by operating activities |
$ |
9,308 |
$ |
7,860 |
|||
Purchases of property and equipment, net |
(3,837 |
) |
(2,812 |
) |
|||
Principal payments on finance leases |
(125 |
) |
— |
||||
Free cash flow |
$ |
5,346 |
$ |
5,048 |