updated 08:46 pm EDT, Wed April 23, 2014
Facebook users' shift to mobile accelerating, new CFO inbound
Facebook today reported financial results for its most recent quarter. The company posted $2.5 billion in revenue, beating analyst expectations, with an operating margin of 43 percent. Net income hit $642 million, with earnings per share of $0.25, an over 70 percent gain in profit in a year. Notably, mobile daily active users increased to 609 million, an increase of 43 percent from 2013.
Revenue from advertising was $2.27 billion, an 82 percent increase from the same quarter last year. Mobile advertising revenue represented approximately 59 percent of advertising revenue for the first quarter of 2014, up from approximately 30 percent of advertising revenue in the first quarter of 2013. Other revenue came in at $237 million.
Costs and expenses for the first quarter of 2014 were $1.43 billion, an increase of 32 percent from the first quarter of 2013, driven primarily by increased headcount and infrastructure expense. Income tax expense for the first quarter of 2014 was $433 million, representing a 40 percent effective tax rate.
Chief Financial Officer David Ebersman has informed the company of his intention to step down after serving in the position for almost five years. On June 1, he will be succeeded as CFO by David Wehner, currently Facebook's Vice President, Corporate Finance and Business Planning. Ebersman will remain with the company through September to ensure a seamless transition of his responsibilities. Wehner joined Facebook in November 2012 from game developer Zynga, where he also served as CFO.