Facebook Q4 results – strong growth, good profits but entering into an investment phase

Facebook announced strong Q4 results yesterday:

  • 1bn monthly active users across all platforms, a 25% YoY increase
  • 680m monthly active users on mobile, a 57% YoY incease
  • Mobile DAUs exceeded web DAUs for the first time in Q4 2012
  • Revenues of $1.6bn, up 40% since Q4 2011 and slightly ahead of analysts’ expectations
  • 84% of revenue from advertising
  • 23% of revenue from mobile, up from 14% in Q3 2012
  • Non GAAP net income of $416m, up 18% since Q4 2011 (although GAAP net income was much lower)

However, investors were expecting all this good news and Facebook shares were down 4% to $30.51 (VatorNews) in after hours trading, most likely because Zuckerberg spooked investors when he said 2013 will be a year of investment rather than a year of profit maximisation. He highlighted Graph Search and Mobile as two areas for investment.

I, for one, am looking forward to what Graph Search brings us in 2013.