Facebook Financial Performance Report

Financial Performance 7. 1 Financial rehearsal FACEBOOK, INC. CONDENSED f utilize BALANCE SHEETS (In megs, except for number of piece of lands and equivalence value) (Unaudited) June 30, 2012 celestial latitude31, 2011 Assets received assets silver and cash equivalents $ 2,098 $ 1,512 food marketable securities 8,090 2,396 Accounts receivable, net of allowances for doubtful accounts of $17 as of June30, 2012 and celestial latitude31, 2011 578 547 Income tax refundable 567 0 Prepaid disbursements and other veritable assets 634 149 integral trustworthy assets 11,967 4,604 Property and equipment, net 2,105 1,475 Good go out and intangible assets, net 809 162 Other assets 47 90 summarize assets $ 14,928 $ 6,331 Liabilities and stockholders equity Current liabilities Accounts payable $ 43 $ 63 Platform partners payable 153 171 Accrued expense s and other current liabilities 441 296 Deferred revenue and deposits 85 90 Current portion of capital lease obligations 312 279 positive current liabilities 1,034 899 Capital lease obligations, less current portion 394 398 Other liabilities 191 one hundred thirty-five Total liabilities 1,619 1,432 Stockholders equity Convertible preferred stock, $0. 000006 par value, issuable in series no shares and 569 cardinal shares authorized as of June 30, 2012 and December 31, 2011, respectively, no shares and 543 gazillion shares issued and outstanding as of June30, 2012 and December31, 2011, respectively 0 615 Common stock, $0. 00006 par value 5,000 billion and 4,141million kinfolkA shares authorized as of June30, 2012 and December31, 2011, respectively, 641million and 117million shares issued and outstanding as of June30, 2012 and December31, 2011, respectively, including 1million outstanding shares subje ct to repurchase as of June30, 2012 and December31, 2011 4,141million order B shares authorized, 1,501million and 1,213million shares issued and outstanding as of June30, 2012 and December31, 2011, respectively, including 2million outstanding shares subject to repurchase, as of June30, 2012 and December31, 2011 0 0 Additional paid-in capital 11,684 2,684 Accumulated other comprehensive evil (29 ) (6 ) Retained earnings 1,654 1,606 Total stockholders equity 13,309 4,899 Total liabilities and stockholders equity $ 14,928 $ 6,331 tax revenue $ 1,184 $ 895 $ 2,242 1,626 Costs and expenses Cost of revenue 367 210 644 377 Marketing and sales 392 96 535 158 explore and developing 705 99 858 156 General and administrative 463 83 567 140 Total costs and expenses 1,927 488 2,604 831 (Loss) income from operations (743 ) 407 (362 ) 795 Interest and other income (expense), net Interest expense (10 ) (9 ) (24 ) (17 ) Other income (expense), net (12 ) 1 3 19 (Loss) income before derive from (provision for) income taxes (765 ) 399 (383 ) 797 Benefit from (provision for) income taxes 608 (159 ) 431 (326 ) Net (loss) income $ (157 ) $ 240 $ 48 $ 471 Less Net income attributable to active securities 0 81 21 160 Net (loss) income attributable to ClassA and Class B common stockholders $ (157 ) $ 159 $ 27 $ 311 (Loss) earnings per share attributable to ClassA and Class B common stockholders basal ($ 0. 08 ) $ 0. 12 $ 0. 02 $ 0. 25 Diluted ($ 0. 08 ) $ 0. 11 $ 0. 02 $ 0. 22 Weighted verage shares used to compute (loss) earnings per share attributable to ClassA and Class B common stockholders Basic 1,879 1,292 1,613 1,267 Diluted 1,879 1,510 1,792 1,499 Share-based compensation expense include in costs and expenses Cost of revenue $ 66 $ 3 $ 71 $ 3 Marketing and sales 232 11 251 11 Research and development 545 35 605 39 General and administrative 263 15 282 18 Total share-based compensation expense $ 1,106 $ 64 $ 1,209 $ 71 ThreeMonthsEnded June30, sestetMonths Ended June30, 2012 2011 2012 2011 Net (loss) income $ (157 ) $ 240 $ 48 $ 471 Other comprehensive (loss) income Foreign capital translation adjustment (21 ) 0 (22 ) 1 Change in unrealized gain (loss) on available-for-sale investments, net of tax (1 ) 0 (1 ) 0 blanket(prenominal) (loss) income $ (179 ) $ 240 $ 25 $ 472 sort Financi al Statement (Sources United States Securities And mass meeting Commission, course of instruction 10-Q, For the quarterly period ended June 30, 2012) Looking at the Financial Statement of Facebook Inc above we heap calculate the current ratio on June 30, 2012 and comparison it with December 31, 2011s ratio. We can calculate the 2011 ratio by using Total Asset of $6,331 million divided by Total Liabilities of $1,432 million equals $4. 42 million. And we can also find out the current ratio of Facebook Inc on June 30, 2012 by using the Current Assets of $11,976 million divided by Current Liabilities of $1,916 million equals $6. 25 million.Financial StatementsAs we can inflict the just in sextette months Facebook Incs ratio increase almost by 70%. 7. 2 fighting(a) Users Figure Trends in Facebook User Metrics, Daily Active Users(Sources United States Securities And Exchange Commission, Form 10-Q, For the quarterly period ended June 30, 2012) The graph above showed us how Facebook Inc increased their ratio almost 70% in just half dozen months. As we can see Daily Active Users Worldwide had increased from 108 million to 552 million users. Facebook Inc define a daily active users as a registered Facebook user who logged in and visited Facebook finished the Facebook website or through a device that can connect with Facebook.Facebook Inc check DAU (Daily Active Users) everyday. In Figure we can see that the Worldwide DAUs increased 32% from 417 million users on June 2011 to 552 million users on June 2012. Most of the users now can log into Facebook through mobile device and Facebook Inc has already realized that. March 31, 2012, DAUs increased from 526 million to 552 million because of the increase of mobile users. 7. 3 Competitor The biggest competitor for Facebook is chitter. The source is that because many celebrities like to use peep to connect with their fans. Twitter has non only become a well known social lucre but yet a tool for celebrities to do advertisement.In the United States presidential election of 2012, President Barack Obama used Twitter to connect with his fans. Figure Twitter Total Active Users, Worldwide (Source Business Wired 2012) Even though Twitter is one of the threats for Facebook, but from the figure we can clear see the big difference that the two company have. On March 31, 2012 Facebook has 526 million active users worldwide, and Twitter only has 200 million active users worldwide. Facebook clearly bring Twitter. 7. 4 Facebooks Stock Markets Even though Facebook beat Twitter in the social network markets, but it has clearly not beat anyone in the stock markets. Below is the graph for Facebooks stock markets.Figure Facebook Stock Market graph, June 2011-December 2012 (Sources United States Securities And Exchange Commission, Form 10-Q, For the quarterly period ended June 30, 2012) Facebook unresolved its stock markets with $31 per stock on May 18, 2011 and on November 16, 2012 it has disagreeable with $23. 56 per stock. Facebooks stock market did not increase as we can see through Facebook. Below is the graph why it has dropped dramatically. Figure Facebooks taxation Makeup, 2012 (Business Insider 2012) As the graph shows that Facebook Inc spent most of their money in advertising the market instead of using the money to pay off their Payments and Other.Although Facebook will continue to increase their active users due to mobile services, but if users growing flattens or decline, the impact of these increase have on Facebooks revenue branch will be limited for sure. Sources Financial Statement http//www. sec. gov/Archives/edgar/ info/1326801/000119312512325997/d371464d10q. htmtx371464_3 Daily Active Users http//www. sec. gov/Archives/edgar/data/1326801/000119312512325997/d371464d10q. htm Twitter Active Users http//blog. businesswire. com/ stigmatise/social-media/ Facebook Stock Markets http//tmx. quotemedia. com/charting. php? qm_symbol=FBUS Facebooks Revenue Makeup htt p//www. businessinsider. com/facebook-users-decline-2012-8