Monday, July 21, 2014 7:04:52 AM
Positive on the ad revenue trend
Among the US large cap internet names, I am more positive on FB as the company has demonstrated solid top and bottom line growth over the past several quarters with accelerating growth in ads and total revenue, and triple digit mobile ad revenue growth. Most importantly, engagement metrics expanded 300bps over the past year, in contrast to Twitter's (NYSE:TWTR) engagement metric, which declined 8% y/y. The overall pricing trend and usage seems to be strong judging by the recent quarterly filings and I expect Q2 to demonstrate another round of solid growth in all the key operating metrics.
Mobile revenue accelerating on the back of rising engagement
I expect mobile revenue to accelerate this quarter on the back of rising mobile engagement. Last Q, mobile revenue accounted for 59% of total ad revenue and I expect the proportion to increase to ~65%, on par with mobile engagement.
Video ad showing initial signs of life
Based on my check, FB seems to have been aggressive in pushing mobile video ads. While the coverage is still small (I observe ~5-10%) as FB try to mitigate user experience, I am still positive on the product's long-term potential. However, investors should not expect to see meaningful impact of the video ads in the upcoming Q given the early stage of the product launch.
Recent META News
- Form SD - Specialized disclosure report • Edgar (US Regulatory) • 05/24/2024 08:26:36 PM
- Form PX14A6G - Notice of exempt solicitation submitted by non-management • Edgar (US Regulatory) • 05/24/2024 03:55:44 PM
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- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/23/2024 11:05:02 PM
- Form PX14A6G - Notice of exempt solicitation submitted by non-management • Edgar (US Regulatory) • 05/23/2024 09:17:19 PM
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- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/18/2024 12:20:26 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/18/2024 12:19:02 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/18/2024 12:17:35 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/18/2024 12:17:28 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/18/2024 12:15:50 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/18/2024 12:14:38 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/18/2024 12:14:21 AM
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- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/18/2024 12:12:02 AM
- Form PX14A6G - Notice of exempt solicitation submitted by non-management • Edgar (US Regulatory) • 05/17/2024 03:20:42 PM
- OpenAI’s Reddit Partnership Boosts Shares by 14%, Microsoft Embraces AMD Chips for AI, and More News • IH Market News • 05/17/2024 11:36:28 AM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/16/2024 08:57:12 PM
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