Facebook beats by $0.04, reports slight miss on revs
- Reports Q2 (Jun) earnings of $1.74 per share, $0.04 better than the Capital IQ Consensus of $1.70; revenues rose 41.9% year/year to $13.23 bln vs the $13.35 bln Capital IQ Consensus.
- Costs +50% to $7.37 bln.
- Daily active users (DAUs) -- DAUs were 1.47 billion on average for June 2018, an increase of 11% year-over-year.
- Monthly active users (MAUs) -- MAUs were 2.23 billion as of June 30, 2018, an increase of 11% year-over-year.
- "Our community and business continue to grow quickly," said Mark Zuckerberg, Facebook founder and CEO. "We are committed to investing to keep people safe and secure, and to keep building meaningful new ways to help people connect."
- FB down 8% after missing revenue estimates for the first time since the first quarter of 2015; also of concern, expenses were up 50% vs. +42% sales growth.
- DAU was flat Q/Q in the US and Canada; down 3M Q/Q to 279M in Europe -- Facebook did warn that monthly/daily active users could be flat to slightly down in in the EU due to the General Data Protection Regulation (GDPR) that went into effect in late May; MAU was flat in US and down 1M in Europe
- Sees operating margin trending towards mid-30%; consensus 45% in FY18 and 44% in FY19
- Guided Q3 rev growth Q/Q deceleration high single digits from 42% vs. +38% in Q3 consensus and high single digit deceleration from there in Q4 vs. +35% in Q4
- Will focus on promoting new products like stories, privacy (over maximzing rev), also FX headwind
- FB -17% after hours
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