TECH

Facebook 2Q 2012: Live Updates On FB's First Earnings Report

07/26/2012 03:59 pm ET

Is Facebook ready to face facts? How much will investors like it after its first quarter as a public company?

Expect similarly awful wordplay on Thursday evening, when the world's largest social network releases its first-ever earnings report as a publicly-traded company. The company's financials for the second fiscal quarter of 2012 will be announced during an earnings call at 5 p.m ET. The pressure's on to see if Facebook can recover after its rocky initial public offering on May 18.

Questions that need answering: How many users has the network gained since the IPO? Will Facebook be able to prove it has a sustainable advertising business as so many people move to mobile? Will Facebook offer a forecast for its next quarter as Apple does, or will it follow in the footsteps of Google and forgo one? Will co-founder Mark Zuckerberg talk much about Facebook's business or defer to other execs? And will he be wearing his hoodie?

Stay tuned to find out...

07/26/2012 6:06 PM EDT

Aww, how cute

07/26/2012 6:05 PM EDT

Facebook, you're no fun

@ shibanijoshi :

Even Facebook can't make an earnings call fun, unfortunately for us...

07/26/2012 5:55 PM EDT

Well, this could appear condescending

07/26/2012 5:54 PM EDT

But what is he WEARING?

Oh God, is Zuck wearing a hoodie?? Twitter is inconclusive... [sigh]

-- Dino Grandoni

07/26/2012 5:51 PM EDT

Say cheese...Hold it...Hold it...Hold it......

Instagram deal still hasn't closed yet. Zuck says no integration until that happens.

07/26/2012 5:47 PM EDT

Next he'll be wearing a tie

This phone-or-no-phone question is interesting and all, but what I find interesting is that Zuckerberg actually answered a question on the call.

-- Mark Gongloff

07/26/2012 5:46 PM EDT

Sorry, Bloomberg

Zuck's denial of a Facebook Phone contradicts a rumor peddled by Bloomberg News JUST TODAY.

07/26/2012 5:44 PM EDT

Fancy talk

07/26/2012 5:44 PM EDT

Quieting the rumors

Zuck says it wouldn't make sense to develop a Facebook phone. Take THAT, rumor mill.

-- Catharine Smith

07/26/2012 5:43 PM EDT

Facebook executives don't give forecast in prepared remarks

Forecasts are something Apple does but Google's doesn't do. So, at least there's precedent in tech for withholding predictions.

This partially explains the spike in \"General & Administrative\" spending during this past quarter.

","short_text":"

From conference call: Facebook now has just under 4,000 employees, an increase of 50% from last year.

— Matthew Keys (@ProducerMatthew) Read More"},{"id":"23","created":"07/26/2012 5:34 PM EDT","title":"Question time!","tweet_link":"23_question-time","entry_text":"

First analyst to say \"Great quarter, guys\" enters the Analyst Hall of Shame.

Nope, the first question is about monetization and expanded distribution agreements.

So, awesome, then.

","short_text":"

First analyst to say \"Great quarter, guys\" enters the Analyst Hall of Shame.

Nope, the first question is about monetization and expanded distribution agreements.

So, awesome, then.
\n

"},{"id":"22","created":"07/26/2012 5:32 PM EDT","title":"Businesses on Facebook","tweet_link":"22_businesses-on-facebook","entry_text":"

11 million businesses have Facebook pages, says Sandberg.

","short_text":"

11 million businesses have Facebook pages, says Sandberg.

"},{"id":"21","created":"07/26/2012 5:31 PM EDT","title":"Sandberg gets high marks","tweet_link":"21_sandberg-gets-high-marks","entry_text":"

Sheryl's ad return detail is good stuff. Don't get that sort of detail from others. $FB

— Peter Eavis (@petereavis)
July 26, 2012

","short_text":"

Sheryl's ad return detail is good stuff. Don't get that sort of detail from others. $FB

— Peter Eavis (@petereavis) Read More"},{"id":"20","created":"07/26/2012 5:30 PM EDT","title":"Here's a look at how FB stock has fared since IPO","tweet_link":"20_heres-a-look-at-how-fb-stock-has-fared-since-ipo","entry_text":"

Facebook's stock fell 8.5 percent during the regular session Thursday, then dropped further in extended trading after the company reported quarterly earnings for the first time as a public company.

More here.

","short_text":"

Facebook's stock fell 8.5 percent during the regular session Thursday, then dropped further in extended trading after the company reported quarterly earnings for the first time as a public company.

Read More"},{"id":"19","created":"07/26/2012 5:27 PM EDT","title":"Speaking of oversharing","tweet_link":"19_speaking-of-oversharing","entry_text":"

Sandberg says Sponsored Stories and News Feed are going to save Facebook, gives some details on return on ads.

Wahh, replies the stock price, now 11 percent down.

After 10 minutes, she hands the call off to the CFO David Ebersman.

-- Mark Gongloff

","short_text":"

Sandberg says Sponsored Stories and News Feed are going to save Facebook, gives some details on return on ads.

Wahh, replies the stock price, now 11 percent down.

After 10 minutes, she hands the call off to the CFO David Ebersman.

--...Read More"},{"id":"18","created":"07/26/2012 5:23 PM EDT","title":"Sandberg praises Sponsored Stories","tweet_link":"18_sandberg-praises-sponsored-stories","entry_text":"

Sandberg says Sponsored Stories (i.e. ads) rake in more than $1 million a day, about half of that is from mobile users.

","short_text":"

Sandberg says Sponsored Stories (i.e. ads) rake in more than $1 million a day, about half of that is from mobile users.

"},{"id":"17","created":"07/26/2012 5:20 PM EDT","title":"Zuck is still plugging Open Graph","tweet_link":"17_zuck-is-still-plugging-open-graph","entry_text":"

Mark Zuckerberg: People sharing 1 billion piece of content each day using Open Graph

— Matthew Keys (@ProducerMatthew)
July 26, 2012

","short_text":"

Mark Zuckerberg: People sharing 1 billion piece of content each day using Open Graph

— Matthew Keys (@ProducerMatthew) Read More"},{"id":"16","created":"07/26/2012 5:16 PM EDT","title":"And with that, Zuckerberg retreats to his glistening money cave","tweet_link":"16_and-with-that-zuckerberg-retreats-to-his-glistening-money-cave","entry_text":"

Zuckerberg wraps up by talking about how Facebook just loves itself a good challenge, and it's going to spend lots of money to wrestle that challenge to the ground!

\"We're working hard to staff up ... to make progress against these goals.\"

And with that, the stock, which had rallied a tiny bit on the sweet sound of Zuck's voice, is back down 10 percent.

Sheryl Sandberg has taken over the call now.

-- Mark Gongloff

","short_text":"

Zuckerberg wraps up by talking about how Facebook just loves itself a good challenge, and it's going to spend lots of money to wrestle that challenge to the ground!

\"We're working hard to staff up ... to make progress against these goals.\"

...Read More"},{"id":"15","created":"07/26/2012 5:12 PM EDT","title":"So. Many. People. Oversharing.","tweet_link":"15_so-many-people-oversharing","entry_text":"

WSJ is reporting that Facebook had 955 million users in the second quarter. That's up from 739 million in the same time period last year.

","short_text":"

WSJ is reporting that Facebook had 955 million users in the second quarter. That's up from 739 million in the same time period last year.<...Read More"},{"id":"14","created":"07/26/2012 5:11 PM EDT","title":"Facebook talks mobile opportunity","tweet_link":"14_facebook-talks-mobile-opportunity","entry_text":"

Zuck is talking about what a big opportunity mobile is for Facebook. He says mobile users are 20 percent more active than other users.

Now if they can just figure out how to make money on all that activity, they'll be all set.

-- Mark Gongloff

","short_text":"

Zuck is talking about what a big opportunity mobile is for Facebook. He says mobile users are 20 percent more active than other users.

Now if they can just figure out how to make money on all that activity, they'll be all set.

-- Mark G...Read More"},{"id":"13","created":"07/26/2012 5:07 PM EDT","title":"Zuckerberg is on the call","tweet_link":"13_zuckerberg-is-on-the-call","entry_text":"

That this is BREAKING NEWS says something about Facebook.

-- Mark Gongloff

","short_text":"

That this is BREAKING NEWS says something about Facebook.

-- Mark Gongloff

"},{"id":"12","created":"07/26/2012 5:06 PM EDT","title":"Is Facebook on a spending binge?","tweet_link":"12_is-facebook-on-a-spending-binge","entry_text":"

Facebook's first public quarter results show signs that it's chasing growth through higher spending: wapo.st/MMgHYr

— The Washington Post (@washingtonpost) July 26, 2012

Look at the chart and spike in R&D spending (Facebook Phone?!), from AllThingsD.

\"facebook

","short_text":"

Facebook's first public quarter results show signs that it's chasing growth through higher spending: wapo.st/MMgHYr

— The Washington Post (@w...Read More"},{"id":"11","created":"07/26/2012 5:00 PM EDT","title":"Hey, somebody's hiring","tweet_link":"11_hey-somebodys-hiring","entry_text":"

Facebook had 3,976 employees at the end of the first half, up 49 percent from a year ago.

","short_text":"

Facebook had 3,976 employees at the end of the first half, up 49 percent from a year ago.

"},{"id":"10","created":"07/26/2012 4:52 PM EDT","title":"Ladies and gentlemen, we have slides","tweet_link":"10_ladies-and-gentlemen-we-have-slides","entry_text":"

Via AllThingsD, here's the slide pack for Facebook's earnings. Enjoy its PowerPointy goodness if you wish, but it does not answer the burning question: Will Zuckerberg be on the call (T-10 minutes)?

","short_text":"

Via AllThingsD, here's the slide pack for Facebook's earnings. Enjoy its PowerPointy goodness if you wish, but it does not answer t...Read More"},{"id":"9","created":"07/26/2012 4:46 PM EDT","title":"Listen, public relations is hard enough without your snark, dude","tweet_link":"9_listen-public-relations-is-hard-enough-without-your-snark-dude","entry_text":"

External Facebook PR flack from Brunswick just called to make sure I have \"everything I need.\" She also called me \"dude.\" #thanks #dude

— Sam Gustin (@samgustin) July 26, 2012

","short_text":"

External Facebook PR flack from Brunswick just called to make sure I have \"everything I need.\" She also called me \"dude.\" #thanks Read More"},{"id":"8","created":"07/26/2012 4:44 PM EDT","title":"Reading is fundamental","tweet_link":"8_reading-is-fundamental","entry_text":"

Facebook now sinking more than 10%, abt to pierce $24. As release hit, up 6%. Classic case of... getting to the end of a press release. $FB

— Kayla Tausche (@kaylatausche) July 26, 2012

","short_text":"

Facebook now sinking more than 10%, abt to pierce $24. As release hit, up 6%. Classic case of... getting to the end of a press release. $FB

— Kayla Tausche (@kaylatausche) Read More"},{"id":"7","created":"07/26/2012 4:43 PM EDT","title":"How much are Facebook users worth?","tweet_link":"7_how-much-are-facebook-users-worth","entry_text":"

$3.20: average revenue per Facebook user in the US and Canada. It's $1.43 in Europe, $0.55 in Asia and $0.44 in the rest of the world.

— Emily Steel (@emilysteel) July 26, 2012

","short_text":"

$3.20: average revenue per Facebook user in the US and Canada. It's $1.43 in Europe, $0.55 in Asia and $0.44 in the rest of the world.

— Emily Steel (@emilysteel) Read More"},{"id":"6","created":"07/26/2012 4:41 PM EDT","title":"Revenue-growth trend has downshifted","tweet_link":"6_revenuegrowth-trend-has-downshifted","entry_text":"

This chart shows the revenue-growth trend, which has downshifted in the past few quarters.

(via Michael Comeau)

\"revenue

Year-over-year revenue growth has slowed from 55 percent to 45 percent to 32 percent.

For the record, those are crazy huge numbers. But they are slowing.

-- Mark Gongloff

","short_text":"

This chart shows the revenue-growth trend, which has downshifted in the past few quarters.

(via Michael Comeau)

Year-over-year revenue growth has slowed from 55 percent to 45 p...Read More"},{"id":"5","created":"07/26/2012 4:37 PM EDT","title":"Facebook nears 1 billion users","tweet_link":"5_facebook-nears-1-billion-users","entry_text":"

But the growth rate is slowing every quarter, as this chart shows:

(via Michael Comeau)

\"facebook

","short_text":"

But the growth rate is slowing every quarter, as this chart shows:

(via Michael Comeau)

"},{"id":"4","created":"07/26/2012 4:31 PM EDT","title":"Stock hits lowest levels ever after earnings reported","tweet_link":"4_stock-hits-lowest-levels-ever-after-earnings-reported","entry_text":"

(via Google Finance)

\"facebook

","short_text":"

(via Google Finance)

"},{"id":"3","created":"07/26/2012 4:25 PM EDT","title":"Here's a suitably horrible number for you","tweet_link":"3_heres-a-suitably-horrible-number-for-you","entry_text":"

Via Kayla Tausche at CNBC, who tweets:

Another zinger that investors feared: \"Capital expenditures for the quarter were $413 million, a 213% year-over-year increase.\" $FB #Q2

— Kayla Tausche (@kaylatausche) July 26, 2012

","short_text":"

Via Kayla Tausche at CNBC, who tweets:

Another zinger that investors feared: \"Capital expenditures for the quarter were $413 million, a 213% year-over-year increase.\" $FB Read More"},{"id":"2","created":"07/26/2012 4:23 PM EDT","title":"The market suddenly agrees with Josh Brown","tweet_link":"2_the-market-suddenly-agrees-with-josh-brown","entry_text":"

The stock is now down 4 percent.

Either Brown has the power to move markets, or people are seeing numbers they don't like. We're guessing the latter, but still reading through the report to see what's so alarming.

-- Mark Gongloff

","short_text":"

The stock is now down 4 percent.

Either Brown has the power to move markets, or people are seeing numbers they don't like. We're guessing the latter, but still reading through the report to see what's so alarming.

-- Mark Gongloff<...Read More"},{"id":"1","created":"07/26/2012 4:17 PM EDT","title":"Facebook posts first earnings as a public company","tweet_link":"1_facebook-posts-first-earnings-as-a-public-company","entry_text":"

Facebook has cleared its first hurdle of the evening: It reports earnings of 12 cents a share for the quarter, bang-on expectations.

Revenue came in at $1.18 billion, a little bit higher than the $1.15 billion Wall Street expected.

Monthly active users are up 29 percent to 955 million, Facebook says. More numbers are flowing out as we read them.

The stock is up about 3 percent in after-hours trade.

-- Mark Gongloff

","short_text":"

Facebook has cleared its first hurdle of the evening: It reports earnings of 12 cents a share for the quarter, bang-on expectations.

Revenue came in at $1.18 billion, a little bit higher than the $1.15 billion Wall Street expected.

Monthly ...Read More"}]

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