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Assessing Facebook’s Advertising Business
As we have come to expect, advertising continues to comprise the majority of Facebook’s revenue. According to the company’s 10-Q filing, advertising accounted for about 86% of Facebook’s revenue in the...
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Slowing Growth in Facebook’s Mature Regions
In our earlier analyses, we observed that Facebook’s user base growth in North America region was outpaced by Facebook’s other regions, especially its emerging market regions Asia and rest of world. In...
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An Uptick in Facebook’s Payments Business
As we noted in February, Facebook recorded an increase in payments revenue in the fourth quarter of 2012; however, the increase in payments revenue was the result of deferred revenue recognition. In...
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Facebook’s Property and Equipment
By examining Facebook’s income statement and balance sheet, we can better understand the company’s fixed assets. We can observe the sequential growth in the historical cost of property and equipment...
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Anticipating Facebook’s Capital Expenditure
We previously examined the composition of Facebook’s fixed assets. We visualized the historical costs of Facebook’s property and equipment, and we looked at the depreciation rates on its line items,...
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The Rise of Facebook’s Mobile Advertising Business
In the second quarter Facebook continued its trend of growing mobile ad revenue to a larger share of its total advertising revenue. Although this result is in line with our conclusions based on...
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Incentives and the Mobile Payments Problem
We last looked at Facebook’s payments business in Q1 2013, where we observed a slight increase in payments revenue. Payments in the second and third quarters remained relatively flat across regions,...
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The Case for WhatsApp
Facebook recently announced its acquisition of WhatsApp for $16B in cash and stock, plus another $3B in RSUs.1 The acquisition was not surprising; mobile messaging is clearly of systemic importance to...
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Revisiting capex
When we last examined Facebook’s capex, we observed that year-over-year the company’s spending on property and equipment has been declining. We concluded that the reduction in network infrastructure...
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Shifting to Mobile*
With its Q1 2014 earnings, Facebook demonstrated its continued structural shift to a mobile company. The company’s mobile active users for the first time crossed the 1B mark. Mobile active users are...
View ArticleProspects for Facebook’s Payments Business [SeekingAlpha Exclusive]
When we last looked at Facebook’s (NASDAQ:FB) payments business we predicted that revenue would plateau as more of its user base transitioned to mobile usage. We made this deduction by observing the...
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