Facebook reported financial results for the quarter ended March 31, 2014 on Wednesday. Revenue for the first quarter of 2014 totaled $2.50 billion, an increase of 72%, compared with $1.46 billion in the first quarter of 2013. Revenue from advertising was $2.27 billion, an 82% increase from the same quarter last year. Mobile advertising revenue represented approximately 59% of advertising revenue for the first quarter of 2014, up from approximately 30% of advertising revenue in the first quarter of 2013. Payments and other fees revenue was $237 million for the first quarter of 2014.
Mark Zuckerberg (Founder and CEO, Facebook): Facebook’s business is strong and growing, and this quarter was a great start to 2014. We’ve made some long term bets on the future while staying focused on executing and improving our core products and business.
Costs and expenses – Costs and expenses for the first quarter of 2014 were $1.43 billion, an increase of 32% from the first quarter of 2013, driven primarily by increased headcount and infrastructure expense.
Income from operations – For the first quarter of 2014, income from operations was $1.08 billion, up 188% compared to $373 million in the first quarter of 2013.
Operating margin – Operating margin was 43% for the first quarter of 2014, compared to 26% in the first quarter of 2013.
Provision for income taxes – Income tax expense for the first quarter of 2014 was $433 million, representing a 40% effective tax rate.
Net income and EPS – For the first quarter of 2014, net income was $642 million, up 193% compared to $219 million for the first quarter of 2013. Diluted EPS was 25 cents in the first quarter of 2014, up 178% compared to $0.09 in the first quarter of 2013.
Capital expenditures – Capital expenditures for the first quarter of 2014 were $363 million.
Cash and marketable securities – Cash and marketable securities were $12.63 billion at the end of the first quarter of 2014.
Free cash flow – Free cash flow for the first quarter of 2014 was $922 million.
[Image courtesy: Facebook]