Professional Documents
Culture Documents
Q4 2012
Safe Harbor
In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures. These non-GAAP measures are in addition to, not a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. A reconciliation of non-GAAP financial measures to the corresponding GAAP measures is provided in the appendix to this presentation. Please also see the appendix to this presentation for information concerning limitations of our key user metrics.
1,056 1,007 901 800 739 845 225 245 268 955 288 304
680 608 161 133 138 183 154 Q4'10 156 174 183
207
196
212
234
255
277
298
201
212
221
229
239
246
253
261
163 Q1'11
169 Q2'11
176 Q3'11
179 Q4'11
183 Q1'12
186 Q2'12
189 Q3'12
193 Q4'12
Please see Facebook's Form 10-K for the year ended December 31, 2012 for definitions of user activity used to determine the number of our MAUs, DAUs and mobile MAUs. The number of MAUs, DAUs, and mobile MAUs do not include Instagram users unless such users would otherwise qualify as MAUs, DAUs, and mobile MAUs based on activity that is shared back to Facebook. In June 2012, we discovered an error in the algorithm we used to estimate the geographic location of our users that affected our attribution of certain user locations for the first quarter of 2012. The first quarter of 2012 user metrics reflect a reclassification to more correctly attribute users by geographic region.
3
618 584 526 457 417 483 126 109 105 119 129 141 153 139 552 152 161
100 87 98
135
143
152
154
160
169
117 Q2'11
124 Q3'11
Q3'11 57%
126 Q4'11
Q4'11 57%
129 Q1'12
Q1'12 58%
130 Q2'12
Q2'12 58%
132 Q3'12
Q3'12 58%
135 Q4'12
Q4'12 59%
Please see Facebook's Form 10-K for the year ended December 31, 2012 for definitions of user activity used to determine the number of our MAUs, DAUs and mobile MAUs. The number of MAUs, DAUs, and mobile MAUs do not include Instagram users unless such users would otherwise qualify as MAUs, DAUs, and mobile MAUs based on activity that is shared back to Facebook. For non-worldwide DAU user numbers presented for the periods marked March 31, 2012 and June 30, 2012, the figures represent an average of the first 25 days of the period and the last 27 days of the period, respectively, due to the algorithm error described in the MAU note on slide 3. These average numbers do not meaningfully differ from the average numbers when calculated over a full month.
4
Q4'10
Q1'11
Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Please see Facebook's Form 10-K for the year ended December 31, 2012 for definitions of user activity used to determine the number of our MAUs, DAUs and mobile MAUs. The number of MAUs, DAUs, and mobile MAUs do not include Instagram users unless such users would otherwise qualify as MAUs, DAUs, and mobile MAUs based on activity that is shared back to Facebook.
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Mobile Only MAUs are mobile MAUs that accessed Facebook solely through mobile apps or our mobile website.
Revenue
Millions of Dollars
Payments and other fees Advertising
$5,089 $1,585 $810 $256 $1,262 $1,131 $1,058 $1,184 $176 $192 $3,711 $557
$954 $156
$188 $186
$4,279
$655
$637
2010
2011
2012
Quarterly
Annual
$5,089 $1,585 $497 $167 $605 $1,262 $198 $1,131 $87 $1,184 $1,058 $113 $87 $118 $361 $346 $328 $341 $1,974 $101 $148 $577 $780 $2,532 $1,914 $1,146 $1,155 $135 $130 $154 $440 $3,711 $277 $363 $1,455
$115
$412
$394
$471
$482
$567
$525
$590
$637
2010
2011
2012
Quarterly
Revenue by user geography is geographically apportioned based on our estimation of the geographic location of our users when they perform a revenue-generating activity. This allocation differs from our revenue by geography disclosure in our consolidated financial statements where revenue is geographically apportioned based on the location of the advertiser or developer.
Annual
$1,329 $156 $1,086 $943 $992 $872 $79 $99 $274 $104 $115 $295 $294 $120 $133 $374 $168
$359
$332
$394
$395
$462
$419
$479
$538
$631
Q4'10
Q1'11
Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Revenue by user geography is geographically apportioned based on our estimation of the geographic location of our users when they perform a revenue-generating activity. This allocation differs from our revenue by geography disclosure in our consolidated financial statements where revenue is geographically apportioned based on the location of the advertiser or developer.
$256 $11 $30 $188 $8 $20 $55 $186 $8 $19 $54 $192 $9 $20 $52 $46
$119 $4 $8 $30
$66
$62
Q1'11
Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Revenue by user geography is geographically apportioned based on our estimation of the geographic location of our users when they perform a revenue-generating activity. This allocation differs from our revenue by geography disclosure in our consolidated financial statements where revenue is geographically apportioned based on the location of the advertiser or developer.
10
June
Jul
Aug
Sept
Oct
Nov
Dec
Jan
Feb
Mar
Q 3 2012
Q 4 2012
Q1 2013
11
US & Canada
$3.20 $2.90 $11.33 $3.20 $3.40 $4.08 $13.58
2010
2011
2012
2010
2011
2012
Europe
$1.60 $1.40 $1.43 $1.37
Asia
$1.71 $5.91 $5.46 $2.05 $3.75 $0.69 $0.56 $0.53 $0.55 $0.58 $1.49 $2.35
Rest of World
$0.44 $0.41 $0.37 $1.50 $0.47 $0.56 $1.84
$0.94
2010
2011
2012
2010
2011
2012
2010
2011
2012
Revenue by user geography is geographically apportioned based on our estimation of the geographic location of our users when they perform a revenue-generating activity. This allocation differs from our revenue by geography disclosure in our consolidated financial statements where revenue is geographically apportioned based on the location of the advertiser or developer. The ARPU amount for US & Canada region in Q1 2012 reflects an adjustment based on the reclassification of certain users between geographical regions to more correctly attribute users by geographic region. Please see Facebook's Form 10-K for the year ended December 31, 2012 for definitions of ARPU and annual ARPU.
12
$1,106
$986
Q4 2012 expenses are estimates and exclude any potential impact of future acquisitions.
13
Expenses as a % of Revenue
Share-based compensation + Payroll tax related to share-based compensation All other expenses
Cost of Revenue
31% 26% 22% 26% 26%
22%
26%
25%
25%
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
11% 9% Q4'11
11% 9% Q4'12
We have reclassified certain prior period amounts in marketing and sales to general and administrative expense to conform to our current period presentation. These reclassifications did not affect revenue, total costs and expenses, income (loss) from operations, or net (loss) income.
14
($743)
Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
Operating Margin 60% 53% 45% 43% 48% 36% 30% 33%
(63%)
Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
15
Revenue Costs and expenses: Cost of revenue Research and development Marketing and sales General and administrative Total costs and expenses Income from operations Interest and other income (expense), net Interest expense Other income (expense), net Income (loss) before provision for income taxes Provision for (benefit from) income taxes Net income (loss) Effective Tax Rate
Q2 through Q4 effective tax rates were influenced by significant share-based compensation expense resulting from our initial public offering, a portion of which is not tax-deductible
16
$64
($59) ($157) Q4'10 Q1'11 Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12
17
$360
$426
2011 Annual
2012
Non-GAAP net income excludes share-based compensation expense, payroll tax expenses related to share-based compensation, and related income tax adjustmentssee the Appendix for a reconciliation of this non-GAAP measure to GAAP net income.
18
Capital Investments
Millions of Dollars
Property and equipment acquired under capital leases Purchases of property and equipment
$473 $510 $217 $606 $89 $56 $33 2009 $293 2010 Annual 2011 2012 $1,235
19
Employees
Period-end Headcount
4,619
2009
2010 Annual
2011
2012
20
Appendix
Reconciliations
GAAP net income Share-based compensation expense Payroll tax expenses related to share-based compensation Income tax adjustments Non-GAAP net income
Three Months Ended December 31, 2011 2012 $ 302 $ 64 76 184 29 (18) 149 $ 360 $ 426
Year Ended December 31, 2011 2012 $ 1,000 $ 53 217 1,572 7 151 (60) (459) $ 1,164 $ 1,317
22
23
24