Boston, MA 01/29/2014 (wallstreetpr) – Facebook Inc (NASDAQ:FB) is to declare its earnings after market close today. No unpleasant surprises are expected. The focus will of analysts, investors, other stakeholders and even the competitors will be more on the user base rather than the earnings.
What To Expect:
Facebook Inc (NASDAQ:FB) is expected to declare revenues of $2.32 billion, a growth of 92% on y-on-y basis with earnings of $0.27, again a growth of 59% y-on-y basis. These results will be for the quarter ending December 2013. The year has been good to Facebook and the last quarter particularly so. Ad revenues have picked up as companies tried to target Christmas and Thanksgiving shoppers. Facebook also tried out the streaming video ads at the end of the quarter and now wants to roll out over its entire network.
All eyes will be focused on the monthly average users (MAUs) and the daily active users (DAUs) and also the geographical base. It has been known for quite some time that though Facebook has seen an extensive growth from non-western countries, revenues from these areas have not kept pace. North America still accounts for a bulk of its revenues, particularly ad revenues. Competition is heating up and Twitter Inc (NYSE:TWTR) is expected to be a serious threat in this region.
Other Innovations:
The focus is to stay relevant. This is more important for social media platforms. Stories, updates or tweets need to go viral with regular frequency. Now, Facebook Inc (NASDAQ:FB) is also rolling out new features even though they may look like copies of the competitors. There are reports that the social media platform is hiring editors for the Newsreader apps developed for the mobile platform. This is being tried out in some locations only like the U.S., Europe and India. Facebook will be looking to roll out across the globe but will require dedicated editors to pick and chose news topics based on the local flavor.
