Facebook’s is getting more and more mobile, now with 1.01 billion users on small screens. It’s Q1 2014 earnings show it beat expectations, earning $2.5 billion in revenue with an $0.34 EPS. It now has 1.28 billion total monthly users, 802 million daily users, and 609 million daily mobile users. Facebook continued its march to become a mobile ad company with 59% of ad revenue coming from portable devices. Wall Street had expected $2.36 billion in revenue and earnings of 24 cents per share.
Compared to Q4 2103, Facebook’s total user count is up 4% from 1.23 billion total monthly users, total daily user count is up 5.9% from 757 million, and daily mobile user count is up 9.5% from 556 million. Mobile ads made up 53% of ad revenue in Q4, the first time they peaked over 50%, and now account for 57% of ad revenue. Wall Street seems to like what it sees as $FB is up 3.6% in after-hours trading as of 2:45pm PST.
Total ad revenue hit $2.27 billion, up 82% from a year ago. Payments revenue including games and apps reached $237 million this quarter, down slightly from $241 million during the holiday Q4. GAAP costs and expenses reached $1.43 billion, up 32% YOY, driven by headcount and infrastructure expenses. Capital expenditures reached $363 million in Q1 2014.
This is the first earnings report after Facebook spent $16 billion in cash and stock (plus extra for bonuses) to buy international messaging app WhatsApp, and virtual reality hardware maker Oculus for around $2 billion in cash and stock. Expect the earnings call to include thoughts on why those were smart buys.