
Facebook Reports Third Quarter 2018 Results - samfisher83
https://investor.fb.com/investor-news/press-release-details/2018/Facebook-Reports-Third-Quarter-2018-Results/default.aspx
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chollida1
Pre:

\- options pricing in move of almost 10%

\- going in the stock is down about SalesForce's entire market cap

Numbers:

\- 3Q Ad revenue $13.54B

\- 3Q Daily Active Users 1.49B

\- 3Q EPS $1.76, Est. $1.47

\- 3Q Rev. $13.73B, Est. $13.80B

\- 3Q Monthly Active Users 2.27B

\- North America DAU was relativly flat

\- European DAU down

\- operating margin is lowering, not too out of line but lowest we've seen,
watch this...

\- Capex was up 90% compared to last Q2 to $3.4B

Notes:

\- 2 Billion+ people used atleast one service once a day

\- 2.6 Billion people used facebook atleast once a month

\- big after hours trading in terms of volume, not much in terms of price
moves, straddle sellers won this one

Questions:

\- Will we hear from Sheryl Sandberg? Has anyone had a larger fall from grace
due to recent large tech company backlash?

\- After hours trading suggests that Wall Street is happy with facebook at its
current valuation, meaning they'll have to find some large growth to join the
big boys Google, Apple, Microsoft and Apple

\- FB Said they would have hit their numbers except for currency issues. watch
to see if they start seriously hedging expenses and earnings, swap or open
market?

\- Have now lost the founders of Instagram, WhatsApp, and Oculus. Was bound to
happen at some point but still is a lot of knowledge lost. This effect will
probably play out over the next 2-8 quarters and not immediately.

\- What is FB doing with US mid terms coming up? Last election they really
failed, and that's being polite. What will Mark let us know about their plans
for the US elections?

~~~
cbm-vic-20
> What will Mark let us know about their plans for the US elections?

The fact that this is even a question is frightening.

~~~
Endama
They have a war room up to watch the current US elections. Same war room for
the Brazilian elections.

[1][https://www.nytimes.com/2018/09/19/technology/facebook-
elect...](https://www.nytimes.com/2018/09/19/technology/facebook-election-war-
room.html) [2][https://gizmodo.com/hey-howd-that-facebook-war-room-fare-
dur...](https://gizmodo.com/hey-howd-that-facebook-war-room-fare-during-
brazils-el-1830089528)

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jayess
More detail here:
[https://s21.q4cdn.com/399680738/files/doc_financials/2018/Q3...](https://s21.q4cdn.com/399680738/files/doc_financials/2018/Q3/Q3-2018-Earnings-
Presentation.pdf)

edit: Massive increase in headcount too: Headcount – Headcount was 33,606 as
of September 30, 2018, an increase of 45% year-over-year.

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samfisher83
It was swinging a lot after hours. The results look pretty good. For a growing
company 20 p/e is pretty good.

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annadane
My question is at what point does Facebook realize that publically displaying
people's likes and tagged ins and such is a terrible idea and just stop doing
it? And providing real privacy options?

~~~
beatgammit
When it stops making them a ton of money. So, probably never.

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eiaoa
What are it's DAU/MAU numbers for the US and Western Europe?

~~~
fullshark
[https://s21.q4cdn.com/399680738/files/doc_financials/2018/Q3...](https://s21.q4cdn.com/399680738/files/doc_financials/2018/Q3/Q3-2018-Earnings-
Presentation.pdf)

Flat from last quarter

