RBC Capital Markets
For the fourth consecutive earnings call, questions were raised as to whether Facebook usage is slipping among teens, and the question appears to be getting old to Chief Financial Officer David Ebersman, who barely dignified it with a response during the question-and-answer portion of the company’s fourth-quarter earnings call Wednesday.
Ad revenue accounted for $2.34 billion of Facebook’s fourth-quarter-2013 revenue total of $2.59 billion, so it’s no surprise that the social network’s advertising results and initiatives were the topic of the lion’s share of discussion during its earnings call Wednesday.
Another 70 million Facebook shares will hit the market, as the social network announced an underwritten registered public offering of class-A common stock, with 27,004,761 coming from the company itself and another 42,995,239 from certain stockholders, including 41,350,000 from Co-Founder and CEO Mark Zuckerberg.
Last week, Ashoat Tevosyan, an engineer on Facebook’s search quality and ranking team, discussed the nuts and bolts behind adding posts to Graph Search. Wednesday, during the social network’s third-quarter earnings call, Co-Founder and CEO Mark Zuckerberg spoke about the reasoning behind the effort.
It seems like on a monthly basis, there’s been a report or study that says teens and young adults are avoiding Facebook in favor of other sites or applications such as Tumblr, Twitter, and Snapchat. Some have even felt that it’s a death knell for the future of the company. But as Chief Financial Officer David Ebersman said during Wednesday’s first-quarter earnings call, Facebook isn’t concerned about these reports.
Facebook Co-Founder and CEO Mark Zuckerberg has attempted over and over to squash speculation about a Facebook phone, and he offered his strongest denial to date during the social network’s fourth-quarter earnings call Wednesday.
A total of 38.5 percent of the 421,233,615 Facebook shares purchased by underwriters prior to its initial public offering went to Morgan Stanley, while E*Trade, which had been touted as the best source of stock in the social network for individual investors, received only 0.05 percent of the shares, according to an amendment to Facebook’s S-1 filing with the Securities and Exchange Commission, filed after the close of trading Friday.