Facebook Q2 2014 Earnings: Mobile Growth Drives Record Revenue
Facebook continued its streak of exceeding Wall Street expectations in Q2 2014, reporting $2.91 billion in revenue and $0.42 earnings per share (EPS). This marked the company’s eighth consecutive quarter of beating projections, with mobile advertising emerging as the dominant growth engine.
Key Financial Highlights
- Total revenue: \(2.91 billion (vs. \)2.81B Wall Street estimate)
- EPS: \(0.42 (vs. \)0.32 estimate)
- Mobile ad revenue share: 62% of total ad revenue
- Stock performance: Shares rose 5.25% in after-hours trading to an all-time high above $75
User Growth Metrics
Facebook demonstrated strong global growth across all platforms:
Monthly Active Users (MAUs)
- Total MAUs: 1.32 billion (+3.125% from Q1)
- Mobile MAUs: 1.07 billion (+5.9% from Q1)
- Mobile-only users: 391 million (vs. 240M desktop-only)
Daily Active Users (DAUs)
- Total DAUs: 829 million (+3.36% from Q1)
- Mobile DAUs: 654 million (+7.4% from Q1)
- Daily engagement: 63% of users return daily
Regional Performance
Facebook showed particular strength in several key areas:
- US & Canada: Added 2 million monthly users (vs. 1M in Q1)
- Global ARPU: Record highs in every region worldwide
- Ad revenue per user: Increased across all geographies
Challenges and Opportunities
While most metrics showed positive growth, some areas faced headwinds:
Payments revenue: Declined slightly to \(234M (from \)237M in Q1)
- Primarily due to US/Canada users shifting to mobile gaming platforms
- Still up 9% year-over-year
Emerging products:
- Facebook Audience Network (mobile ad network) still in early stages
- Slingshot (Snapchat compe*****) recently launched
Leadership Perspective
CEO Mark Zuckerberg commented:
“We had a good second quarter. Our community has continued to grow, and we see a lot of opportunity ahead as we connect the rest of the world.”
Future Outlook
During the earnings call, Facebook revealed several strategic insights:
- Messenger monetization: Payments integration planned, but taking measured approach
- US user engagement: Average 40 minutes daily (with potential for growth)
- Teen engagement: No specific update provided (previously noted slight dip among young US teens)
Facebook’s strong mobile performance and global user growth position the company well for continued expansion, particularly in mobile-first emerging markets.
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