Facebook Releases Earnings, Narrative Confirms Our Previous Theory Regarding Future Business Strategy Even As Sources of Earnings Struggle

 

Facebook (FB), Zuckerberg recognize the source of future growth and declare ‘Mobile’ as the future of the Facebook business.

A brilliant analysis once declared that:

“A quick look at Facebook’s recent Form 10-Q shows that Facebook is well-aware of the need for a mobile strategy and is working to develop and execute on, well, something.”

and

Translation: User growth is coming from mobile.”

In its earnings release for Q4 and FY2012, Facebook declared that:

“In 2012, we connected over a billion people and became a mobile company . . .”

Monthly active users (MAUs) increased 25% year-over-year while mobile MAUs increased 57%.  In addition, mobile’s share of advertising revenue increased from 14% in Q3 to 23% in Q4.

(at 3:45) “See your future, be your future, ma-make, make it, make it, make your future.” – Chevy Chase as Ty Webb, from (do we have to tell you?) ‘Caddyshack’

There were some concerning issues in the release as well, particularly with respect to drops in income.  We will take a much closer look at the Form 10-K when it is available to get the full story.  Stay Tuned.

Links:
Facebook Q4 and FY2012 Earnings Release

**Full disclosure:  We own shares of Facebook.

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