Facebook (FB - Analyst Report) announced earnings after the closing bell on Tuesday, and once again the company topped estimates. Revenues in the quarter reached $3.2 billion on earnings of 33 cents per share (final, actual, before non-recurring items), beating the Zacks consensus estimates of $3.1 billion and 32 cents per share, respectively.
Far from suffering the user concerns and leveling-off growth trajectories of Twitter (TWTR - Analyst Report), Facebook continues to make strong improvements in ad revenues and active usership, especially in mobile. Daily Active Users (DAU) of 864 million was a nice jump from the 852 million expected and 19% higher than a year ago. Monthly Active Users (MAU) has now hit 1.35 billion, up 14% year over year.
As was the case a quarter ago, Facebook's mobile DAU numbers continue to impress: 703 million daily active users on average for the September quarter represents 39% growth from the same quarter a year ago. Importantly, mobile total ad revenue now makes up 66% of Facebook's sales. This is how Facebook has posted 59% revenue growth year over year.
Yet Facebook shares are selling off slightly in the aftermarket following the earnings announcement, and after a modest gain in regular Tuesday trading. But keep in mind Facebook has traded up more than 6% over the past week, and shares are up nearly 48% year-to-date.
Further, Facebook's conference call will bring into focus forward guidance, as well as some articulation regarding the development of its vast array of recent acquisitions, such as WhatsApp and Oculus. How CEO Mark Zuckerberg relates his outlook for the company may dictate market moves in a more significant way than after-hours trading has done thus far.
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