From Tyler Durden: During Facebook Inc’s (NASDAQ:FB) conference call last night, shareholders sold off the company’s shares in droves after FB said that revenue growth rate will decline in Q4 and 2017 will see capex grow substantially.
As we detailed earlier, what a difference a quarter makes: 3 months after Facebook soared when it smashed Q2 EPS and revenue, moments ago the world’s biggest social network beat on the top and bottom line and the stock first dipped, then rebounded back to unchanged.
Here are the key results, all of which beat:
The only metric on which Facebook demonstrated some weakness was mobile ad revenue which grew at 84% in Q3, vs an estimate of 85%.
So while adjusted EPS of $1.09 was 12% above what analysts had predicted for Q3, it pales when compared with the previous three quarters, when EPS exceeded estimates by 18%, 23% and 17% respectively. Facebook’s average earnings beat is 16%.
As BBG notes, one spot of worry for Facebook is the average revenue (ARPU) it makes from each user rose a bit less than the prior quarter.ARPU in the third quarter was $4.01 worldwide, up 35% year-over-year. The ARPU growth rate in the second quarter was 38%
Zuckerberg was laconic: “We had another good quarter,” said Mark Zuckerberg, Facebook founder and CEO. “We’re making progress putting video first across our apps and executing our 10 year technology roadmap.”
Here is the quarter breakdown in charts:
Income from operations
And Net Income:
And while the company’s earnings were a comfortable beat, perhaps because the beat wasn’t big enough, the stock initially dipped in the after hours, then moved back up to unchanged.
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