Facebook reported financial results for the fourth quarter and full year ended December 31, 2013.

Mark Zuckerberg (Founder and CEO, Facebook): It was a great end to the year for Facebook. We’re looking forward to our next decade and to helping connect the rest of the world.

 Full Year 2013 Business Highlights

• Revenue for the full year 2013 was $7.87 billion, an increase of 55% year-over-year.
• Income from operations for the full year 2013 was $2.80 billion.
• Net income for the full year 2013 was $1.50 billion.
• Free cash flow for the full year of 2013 was $2.85 billion.
• Daily active users (DAUs) were 757 million on average for December 2013, an increase of 22% year-over-year.
• Mobile DAUs were 556 million on average for December 2013, an increase of 49% year-over-year.
• Monthly active users (MAUs) were 1.23 billion as of December 31, 2013, an increase of 16% year-over-year.
• Mobile MAUs were 945 million as of December 31, 2013, an increase of 39% year-over-year.

Fourth Quarter 2013 Financial Highlights

Revenue – Revenue for the fourth quarter of 2013 totaled $2.59 billion, an increase of 63%, compared with $1.59 billion in the fourth quarter of 2012.

• Revenue from advertising was $2.34 billion, a 76% increase from the same quarter last year.
• Mobile advertising revenue represented approximately 53% of advertising revenue for the fourth quarter of 2013, up from approximately 23% of advertising revenue in the fourth quarter of 2012.
• Payments and other fees revenue was $241 million for the fourth quarter of 2013.

Costs and expenses – Costs and expenses for the fourth quarter of 2013 were $1.45 billion, an increase of 37% from the fourth quarter of 2012, driven primarily by increased headcount and infrastructure expense.

Income from operations – For the fourth quarter of 2013, income from operations was $1.13 billion, compared to $523 million in the fourth quarter of 2012.

Operating margin – Operating margin was 44% for the fourth quarter of 2013, compared to 33% in the fourth quarter of 2012.

Provision for income taxes – Income tax expense for the fourth quarter of 2013 was $607 million, representing a 54% effective tax rate.

Net income and EPS – For the fourth quarter of 2013,  net income was $523 million, compared to $64 million for the fourth quarter of 2012. Diluted EPS was 20 cents in the fourth quarter of 2013, compared to 3 cents in the fourth quarter of 2012.

Capital expenditures – Capital expenditures for the fourth quarter of 2013 were $483 million.

Cash and marketable securities – Cash and marketable securities were $11.45 billion at the end of 2013.

[Image courtesy: Facebook]