Facebook Earnings Post Another Quarter of Monstrous Growth To Finish 2016
By The Motley Fool // February 5, 2017
FACEBOOK Net income UP 128 percent
(THE MOTLEY FOOL) – Facebook (NASDAQ:FB) posted another quarter of monstrous growth on Wednesday, blowing past expectations on every front.
Fourth-quarter revenue increased 51 percent, dwarfing the company’s 29 percent increase in costs and expenses during the same quarter, helping net income rise even faster than revenue as Facebook benefited from operating leverage.
Net income soared 128 percent year over year, translating to $1.21 per share on a generally accepted accounting principles basis (GAAP) or $1.41 on a non-GAAP basis.
Growth in the fourth quarter was driven entirely by the company’s advertising business, which now accounts for 98 percent of total revenue.
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Here’s a look at some of the key takeaways from the fourth-quarter update.
The raw numbers
|Metric||Q4 2016||Q4 2015||Change (YOY)|
|Revenue||$8.8 billion||$5.8 billion||51%|
|Operating margin||52%||44%||800 basis points|
|Net income||$3.6 billion||$1.6 billion||128%|