Professional Documents
Culture Documents
Q2 2013
Non-GAAP Measures
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.
699 195
126 119
129
141
153
167
181
152
154
160
169
179
182
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%
139 Q1'13
Q1'13 60%
142 Q2'13
Q2'13 61%
Please see Facebook's most recent Form 10-Q filed with the SEC for definitions of user activity used to determine the number of our DAUs, MAUs, and mobile MAUs. The number of DAUs, MAUs, and mobile MAUs do not include Instagram users unless they would otherwise qualify as such users, respectively, based on their other activities on Facebook.
901 245
955 268
1,007 288
1,056 304
1,110 327
1,155 346
234
255
277
298
319
339
261
269
272
193 Q4'12
195 Q1'13
198 Q2'13
Please see Facebook's most recent Form 10-Q filed with the SEC for definitions of user activity used to determine the number of our DAUs, MAUs, and mobile MAUs. The number of DAUs, MAUs, and mobile MAUs do not include Instagram users unless they would otherwise qualify as such users, respectively, based on their other activities on Facebook.
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Mobile DAUs are defined as users who accessed Facebook through our mobile apps or our mobile website during a given day. The number of mobile DAUs do not include Instagram users unless they would otherwise qualify as such users based on their other activities on Facebook.
325
376
Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Please see Facebook's most recent Form 10-Q filed with the SEC for definitions of user activity used to determine the number of our DAUs, MAUs, and mobile MAUs. The number of DAUs, MAUs, and mobile MAUs do not include Instagram users unless they would otherwise qualify as such users, respectively, based on their other activities on Facebook.
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Mobile-only MAUs are defined as users who accessed Facebook solely through mobile apps or our mobile website during a given month. The number of mobile-only MAUs do not include Instagram users unless they would otherwise qualify as such users based on their other activities on Facebook.
Revenue
In Millions
Payments and other fees Advertising
$1,262 $176
$895 $119
$954 $156
$188
$192
$776
$798
$943
$872
$992
Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
*In the fourth quarter of 2012 we recognized revenue from four months of Payments transactions for accounting reasons detailed on pages 47 and 48 of our Form 10-K filed on February 1, 2013.
$1,813 $1,585 $167 $1,184 $1,058 $87 $118 $328 $113 $135 $346 $1,262 $130 $154 $341 $440 $423 $198 $1,458 $159 $197 $505 $213 $247
$471
$482
$567
$525
$590
$637
$780
$679
$848
Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
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 condensed consolidated financial statements where revenue is geographically apportioned based on the location of the marketer or developer.
$1,599 $202 $1,329 $156 $1,086 $943 $79 $95 $306 $992 $872 $79 $99 $274 $104 $115 $294 $120 $133 $295 $168 $374 $1,245 $150 $176 $451 $225
$367
$394 Q2'11
$395 Q3'11
$462
$419
$479
$538
$631
$552
$721
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
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 condensed consolidated financial statements where revenue is geographically apportioned based on the location of the marketer or developer.
10
$256 $11 $30 $188 $8 $20 $55 $186 $8 $19 $54 $192 $9 $20 $52 $46 $176 $10 $21 $213 $9 $21 $56 $214 $11 $22 $54
$119 $4 $8 $30
$66
$127
$127
Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12*
Q1'13
Q2'13
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 condensed consolidated financial statements where revenue is geographically apportioned based on the location of the marketer or developer. *In the fourth quarter of 2012 we recognized revenue from four months of Payments transactions for accounting reasons detailed on pages 47 and 48 of our Form 10-K filed on February 1, 2013.
11
US & Canada
$4.08 $3.20 $0.60 $1.41 $2.59 $2.87 $3.40 $0.53 $0.78 $3.50 $0.65 $4.32 $0.65
$1.07
$1.11
$1.29
$1.15
$3.30
$3.67 $2.85
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Europe
$1.43 $0.21 $1.37 $0.18 $1.71 $0.26 $1.60 $0.21
Asia
$1.87 $0.20 $0.69 $0.55 $0.08 $1.67 $0.47 $0.50 $0.58 $0.57 $0.58 $0.08 $0.10 $0.64 $0.07 $0.75 $0.07
Rest of World
$0.56 $0.04 $0.50 $0.03 $0.63 $0.03
$0.44 $0.03
$0.47 $0.04
$1.21
$1.18
$1.46
$1.38
$0.68
$0.40
$0.43
$0.53
$0.48
$0.60
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
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 condensed consolidated financial statements where revenue is geographically apportioned based on the location of the marketer or developer. Please see Facebooks Form 10-Q for the quarter ended June 30, 2013 for the definition of ARPU. *In the fourth quarter of 2012 we recognized revenue from four months of Payments transactions for accounting reasons detailed on pages 47 and 48 of our Form 10-K filed on February 1, 2013.
12
$1,106
$986
$224 $103 $97 Q1'12 $113 Q2'12 $179 $28 $138 Q3'12 $184 $24 $137 Q4'12 $170 $9 $135 Q1'13 $17 $175
Q2'13
13
Expenses as a % of Revenue
Share-based compensation + Payroll tax related to share-based compensation All other expenses
Cost of Revenue
31% 26% 25% 28% 26%
25%
25%
24%
28%
25% 9%
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Q2'12
15% 12% 13% Q2'13 11% Q2'12 10% Q3'12 11% 9% Q4'12 12% 10% Q1'13 10% 8% Q2'13
14
($743)
Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13
Non-GAAP Income from Operations (in millions) $624 $736 $485 $515 $525 $563 $794
$477
$484
Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Non-GAAP income (loss) from operations excludes share-based compensation expense, payroll tax expenses related to share-based compensation, and related income tax adjustmentssee the Appendix for a reconciliation of this non-GAAP measure to GAAP income (loss) from operations.
15
Operating Margin
GAAP Operating Margin 45% 43% 48% 36% 30% 33% 31%
26%
(63%)
Q2'11 Q3'11 Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Q2'13
Non-GAAP Operating Margin 53% 51% 55% 46% 43% 42% 46% 44%
39%
Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Non-GAAP operating margin excludes share-based compensation expense, payroll tax expenses related to share-based compensation, and related income tax adjustmentssee the Appendix for a reconciliation of this non-GAAP measure to GAAP operating margin.
16
($ in millions) Non-GAAP income before provision for income taxes Non-GAAP provision for income taxes Effective Tax Rate
Q212 through Q412 GAAP effective tax rates were influenced by significant share-based compensation expense resulting from our initial public offering, a portion of which is not tax-deductiblesee the Appendix for a reconciliation of this non-GAAP measure to GAAP effective tax rate.
17
$240
$227
$219
Q2'11
Q3'11
Q4'11
Q1'12
($157) Q2'12
Q1'13
Q2'13
$285
$273
$360
$287
$295
$311
$426
Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
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
Diluted EPS
GAAP Diluted EPS $0.14 $0.09 $0.03 ($0.02) Q2'11 Q3'11 Q4'11 Q1'12 ($0.08) Q2'12 Q3'12 Q4'12 Q1'13 Q2'13 $0.09 $0.13 $0.11
$0.10
$0.12
$0.12
$0.15
Q2'11
Q3'11
Q4'11
Q1'12
Q2'12
Q3'12
Q4'12
Q1'13
Q2'13
Non-GAAP diluted EPS 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 diluted EPS.
19
Capital Investments
Millions of Dollars
Property and equipment acquired under capital leases Purchases of property and equipment
$956 $90 $606 $11 $866 $595 $293 1H'12 Quarterly 1H'13 2010 $510 $217
2011 Annual
2012
20
Appendix
Reconciliations
Income from Operations (in millions) GAAP income (loss) from operations Share-based compensation expense Payroll tax expenses related to share-based compensation Non-GAAP income from operations Q2'11 407 64 6 $ 477 $ Q3'11 414 70 $ 484 $ Q4'11 548 76 $ 624 $ Q1'12 381 103 1 $ 485 $ Q2'12 (743) 1,106 152 $ 515 $ Q3'12 377 179 (31) $ 525 $ Q4'12 523 184 29 $ 736 $ Q1'13 373 170 20 $ 563 $ Q2'13 562 224 8 $ 794 $
Operating Margins GAAP operating margin Share-based compensation expense Payroll tax expenses related to share-based compensation Non-GAAP operating margin
Net Income (Loss) (in millions) GAAP net income (loss) Share-based compensation expense Payroll tax expenses related to share-based compensation Income tax adjustments Non-GAAP net income
Diluted Earnings (Loss) Per Share GAAP diluted earnings (loss) per share Net income attributable to participating securities Non-GAAP adjustments to net income (loss) Non-GAAP adjustments to diluted shares Non-GAAP diluted earnings per share
22
Reconciliations (continued)
Effective Tax Rate (in millions) GAAP (loss) income before tax GAAP benefit from (provision for) income taxes GAAP effective tax rate GAAP benefit from (provision for) income taxes Share-based compensation and related payroll tax expenses Non-GAAP income before provision for income taxes Non-GAAP provision for income taxes Non-GAAP effective tax rate $ Q2'12 (765) 608 79% $ Q3'12 372 (431) 116% 372 148 520 209 40% $ Q4'12 505 (441) 87% 505 213 718 292 41% $ Q1'13 353 (134) 38% 353 190 543 231 43% $ Q2'13 545 (212) 39% 545 232 777 289 37% FY2011 $ 1,695 (695) 41% $ 1,695 224 $ 1,919 755 39% FY2012 $ 494 (441) 89% $ 494 1,723 $ 2,217 900 41%
$ $
$ $
$ $
$ $
23
24
25