Facebook (FB) Announces Q1:18 Financial Results; Shares Spike 5%

Facebook (NASDAQ:FB) reported its first-quarter financial results, and investors must have liked what they heard as shares are up nearly 5% to $165.25 in after-hours.

First Quarter 2018 Operational and Other Financial Highlights

  • Daily active users (DAUs) – DAUs were 1.45 billion on average for March 2018, an increase of 13% year-over-year.
  • Monthly active users (MAUs) – MAUs were 2.20 billion as of March 31, 2018, an increase of 13% year-over-year.
  • Mobile advertising revenue – Mobile advertising revenue represented approximately 91% of advertising revenue for the first quarter of 2018, up from approximately 85% of advertising revenue in the first quarter of 2017.
  • Capital expenditures – Capital expenditures for the first quarter of 2018 were $2.81 billion.
  • Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $43.96 billion at the end of the first quarter of 2018.
  • Headcount – Headcount was 27,742 as of March 31, 2018, an increase of 48% year-over-year.

“Despite facing important challenges, our community and business are off to a strong start in 2018,” said Mark Zuckerberg, Facebook founder and CEO. “We are taking a broader view of our responsibility and investing to make sure our services are used for good. But we also need to keep building new tools to help people connect, strengthen our communities, and bring the world closer together.”

In April 2018, we increased the amount authorized under our share repurchase program by an additional $9.0 billion. Our board of directors originally authorized repurchases of up to $6.0 billion of our Class A common stock under the repurchase program, and this increase is incremental to the original authorization.

Analyst Ratings

When it comes to Wall Street’s bet, the odds are on this social media giant, with TipRanks analytics showcasing FB as a Strong Buy. Out of 34 analysts polled in the last 3 months, 31 are bullish on Facebook stock while 2 remain sidelined, and one is bearish. With a return potential of nearly 37%, the stock’s consensus target price stands at $219.33.

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