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Topeka Capital Markets Senior Analyst Victor Anthony breaks down Facebook’s fourth-quarter earnings results.
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This out to looks pretty Victor Anthony for a preview he's the senior analyst at Topeka capital markets at.
-- -- did not been sitting here waiting to see that everybody keeps saying and rightly so of course.
Mobile monetization meaning making money off mobile cause more and more people are accessing FaceBook off that isn't that what you're looking for is there something else as a second choice.
Yes there -- -- things the first thing is obviously mobile monetization because.
You could just shifted off of -- -- to mobile so investors including myself will be looking for.
You know the level of modernization.
With regards to mobile -- estimating that brought between people present -- -- Advertising revenues will come from mobile -- water pump up from 14% in the third quarter.
Also we look at toward the level of engagement on the site just you know -- big concern -- -- don't use of fatigue.
So they're looking looking for whether or not.
You know daily active views as percent of monthly active users whether -- not -- -- an unfortunate and down so that's a sector.
And local government -- stay with -- the numbers just came -- we're just going through them if we can put up the bid after hours and and -- lower is it is a little lower let's let's go to Adam Shapiro go ahead -- -- Yeah earnings per share came -- -- seventeen cents David street is expecting fifteen cents revenue -- point 59 billion industry was expecting -- point 53 billion.
They're talking about in the report mobile revenue represented approximately 23%.
Of advertisers revenue.
For the fourth quarter of 2012 up from approximately 40% of advertising revenue in the third quarter of 2000 up nurture body -- mobile mobile mobile 23% -- the figure.
Okay what we wanna go to the CB but first I want to go back to victory entity for -- second -- it missed.
On that number that key number that you just mentioned.
It it got 23%.
Of total ad sales and mobile and that's enough descended down after hours is that a disappointment to yield.
-- us his outlook put 23 point 8% cabinet -- 23% -- -- war.
Really -- sequential growth and looks like that psychological boost ahead it would outlook.
But it is surprising look at how it's down now we're we're down about three box on a stock that's a pretty significant loss after hours.
Yes -- you don't have to go through the details of it seat.
Import.
I'm really concerned investors because the top line number it is gonna have revenues beat -- definitely -- the -- -- -- -- Pretty good political -- show over here as you look -- a more at that and and Larry date they match the whisper number of seventeen cents I -- street was looking for fifteen cents but.
Stop bad curve for a little FaceBook it's been embattled not little it's huge but but to -- -- -- -- in its birth as an IPO and then after that and suddenly it's done pretty well over the past couple weeks.
Yeah and -- -- listening to fox about a half an hour ago but.
You know -- -- there had to -- -- beat beat -- we -- like nineteen cents and over one point six and revenue especially on the revenue side.
We need to see a really big -- for the stock to go higher I think fundamentally it's a great company.
Great things are throwing a lot of things against the while something will stick.
It is down three dollars right now and you like the company long term like I do a great time to get in right now well ironically this is about the level that many people -- -- -- started out right Larry about 31 that we could retaliate and 300.
Right and it's all the noises over with now I'll -- -- lock up X is to have to have expired now we're down the business to grab searches is something in its infancy but.
Just imagine just a possibility that the -- -- searched you know granular details and all your friends and is a great thing in ad revenues -- a lot mobile mobile mobile.
If it would've hit over one point six we -- seen its stock rise it did and that's why it's retrieved a little bit of good time to get them.
OK and remember these things can moderate a bit but at the first blush down 10% for the stock at them you know and and then it's moderating but.
Let me get back to Victor Anthony the engagement numbers meaning how many people are actually jumping on and using their FaceBook page.
Have you seen anything that -- -- that encourages you.
Victory there.
I think -- lost Victor so let's -- bachelor show over and ask in the same question I know he hasn't really had a chance -- he's standing there on the floor but.
I'm looking at some of these numbers here -- and Adam I don't know piercing anything their but the user growth that's always something the people look at they may put it lower than the actual mobile ad revenue but.
Listen how many people are actually using these things in the -- issue we should also bring up that.
Then there was the issue one -- you talk about -- and the fact that the portion of users using zinc is declining on FaceBook but then there's the issue that Adam Sampson over and our web.
Team is pointing out that they're reporting from FaceBook that excluding share based compensation and related payroll expenses.
Non-GAAP operating margin was 46% for the fourth quarter compared.
To 55%.
For the fourth quarter of 2011.
So we you know things are tightening up there and that maybe one of the things that has investors little bit worried.
Hey Victor.
Victor Anthony is back -- -- now what about the payments business.
FaceBook was very excited about getting -- payments business.
Tell us about the future expansion of the possibility for growth there.
Yes sentiment data which in Vietnam you know we -- -- my estimate in a quarter.
You know I think what they're doing is -- diversified with -- And what they're they're actually promoted.
There not -- Zynga game developers.
And so to make it a big push to get those guys who really come onto the platform.
Second thing is Leno to guess which is a new -- e-commerce business that they -- you know what quarter Davos repayment some -- revenue streams law.
-- I ask you how much because they have done about a 10012.
Million before -- think.
Well dependence of these revenues came in at 256 million dollars above my two very.
I don't know I don't think that's that's significant right yes a nice little business by the way are you -- you be happy to know -- is stock is fighting back after hours it dropped down to about 28 dollars a share it's now.
The bid now after hours is 2953.
So it looks like.
Investors are piecing through this and seeing the peace in the bits in the pieces that you were seeing is a positive.
-- you know I'd been audited or raw numbers are part of -- growth was comes much on the that I expected.
And sequential growth rate of mobile advertising revenues as much on the that I expected I think only on pause and markets see -- -- concerned.
The -- eating -- and number I was talking about earlier.
That it was essentially flat and so.
I think history was expecting -- Ohio engagement level.
Which is represented by armed daily active -- as a percent of monthly users base so strong.
As we figured all right Victor Anthony thank you so much and our thanks to Larry chauffeur in the pits of the CME and look at that it's now over thirty dollars and started.
