January 28, 2015 Last Updated 3:35 pm

Facebook revenue up 53% in Q4, tops $12 billion for full year

Press Release:

MENLO PARK, Calif. – January 28, 2015 — Facebook, Inc. today reported financial results for the fourth quarter and full year ended December 31, 2014.

“We got a lot done in 2014. Our community continues to grow and we’re making progress towards connecting the world,” said Mark Zuckerberg, Facebook founder and CEO.

FB-Q4-2014

Full Year 2014 Business Highlights

  • Revenue for the full year 2014 was $12.47 billion, an increase of 58% year-over-year.
  • Income from operations for the full year 2014 was $4.99 billion.
  • Net income for the full year 2014 was $2.94 billion.
  • Free cash flow for the full year 2014 was $3.63 billion.
  • Daily active users (DAUs) were 890 million on average for December 2014, an increase of 18% year-over-year.
  • Mobile DAUs were 745 million on average for December 2014, an increase of 34% year-over-year.
  • Monthly active users (MAUs) were 1.39 billion as of December 31, 2014, an increase of 13% year-over-year.
  • Mobile MAUs were 1.19 billion as of December 31, 2014, an increase of 26% year-over-year.

Fourth Quarter 2014 Financial Highlights

Revenue – Revenue for the fourth quarter of 2014 totaled $3.85 billion, an increase of 49%, compared with $2.59 billion in the fourth quarter of 2013. Excluding the impact of year-over-year changes in foreign exchange rates, revenue would have increased by 53%.

  • Revenue from advertising was $3.59 billion, a 53% increase from the same quarter last year. Excluding the impact of year-over-year changes in foreign exchange rates, revenue from advertising would have increased by 58%.
  • Mobile advertising revenue represented approximately 69% of advertising revenue for the fourth quarter of 2014, up from approximately 53% of advertising revenue in the fourth quarter of 2013.
  • Payments and other fees revenue was $257 million, a 7% increase from the same quarter last year.

Costs and expenses – GAAP costs and expenses for the fourth quarter of 2014 were $2.72 billion, an increase of 87% from the fourth quarter of 2013. Non-GAAP information for 2013 has been updated to exclude amortization of intangible assets to conform to our current period presentation. Excluding amortization of intangible assets, share-based compensation and related payroll tax expenses, non-GAAP costs and expenses were $1.63 billion in the fourth quarter of 2014, up 50% compared to $1.09 billion for the fourth quarter of 2013.

Income from operations – GAAP income from operations for the fourth quarter of each of 2014 and 2013 was $1.13 billion. Excluding amortization of intangible assets, share-based compensation and related payroll tax expenses, non-GAAP income from operations for the fourth quarter of 2014 was $2.22 billion, up 48% compared to $1.50 billion for the fourth quarter of 2013.

Operating margin – GAAP operating margin was 29% for the fourth quarter of 2014, compared to 44% in the fourth quarter of 2013. Excluding amortization of intangible assets, share-based compensation and related payroll tax expenses, non-GAAP operating margin was 58% for the fourth quarter of each of 2014 and 2013.

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