MENLO PARK, Calif., April 23, 2014 /PRNewswire/ — Facebook, Inc. (NASDAQ: FB) today reported financial results for the quarter ended March 31, 2014.

«Facebook’s business is strong and growing, and this quarter was a great start to 2014,» said Mark Zuckerberg, Facebook founder and CEO. «We’ve made some long term bets on the future while staying focused on executing and improving our core products and business. We’re in great position to continue making progress towards our mission.»

First Quarter 2014 Financial Summary

First Quarter 2014 Operational Highlights

• Daily active users (DAUs) were 802 million on average for March 2014, an increase of 21% year-over-year.
• Mobile DAUs were 609 million on average for March 2014, an increase of 43% year-over-year.
• Monthly active users (MAUs) were 1.28 billion as of March 31, 2014, an increase of 15% year-over-year.
• Mobile MAUs were 1.01 billion as of March 31, 2014, an increase of 34% year-over-year.

First Quarter 2014 Financial Highlights

Revenue – Revenue for the first quarter of 2014 totaled $2.50 billion, an increase of 72%, compared with $1.46 billion in the first quarter of 2013.

• Revenue from advertising was $2.27 billion, an 82% increase from the same quarter last year.
• Mobile advertising revenue represented approximately 59% of advertising revenue for the first quarter of 2014, up from approximately 30% of advertising revenue in the first quarter of 2013.
• Payments and other fees revenue was $237 million for the first quarter of 2014.

Costs and expenses – GAAP costs and expenses for the first quarter of 2014 were $1.43 billion, an increase of 32% from the first quarter of 2013, driven primarily by increased headcount and infrastructure expense. Excluding share-based compensation and related payroll tax expenses, non-GAAP costs and expenses were $1.13 billion in the first quarter of 2014, up 26% compared to $895 million for the first quarter of 2013.

Income from operations – For the first quarter of 2014, GAAP income from operations was $1.08 billion, up 188% compared to $373 million in the first quarter of 2013. Excluding share-based compensation and related payroll tax expenses, non-GAAP income from operations for the first quarter of 2014 was $1.37 billion, up 144% compared to $563 million for the first quarter of 2013.

Operating margin – GAAP operating margin was 43% for the first quarter of 2014, compared to 26% in the first quarter of 2013. Excluding share-based compensation and related payroll tax expenses, non-GAAP operating margin was 55% for the first quarter of 2014, compared to 39% for the first quarter of 2013.

Provision for income taxes – GAAP income tax expense for the first quarter of 2014 was $433 million, representing a 40% effective tax rate. Excluding share-based compensation and related payroll tax expenses, the non-GAAP effective tax rate would have been approximately 36%.

Net income and EPS – For the first quarter of 2014, GAAP net income was $642 million, up 193% compared to $219 million for the first quarter of 2013. Excluding share-based compensation and related payroll tax expenses and income tax adjustments, non-GAAP net income for the first quarter of 2014 was $885 million, up 184% compared to $312 million for the first quarter of 2013. GAAP diluted EPS was $0.25 in the first quarter of 2014, up 178% compared to $0.09 in the first quarter of 2013. Excluding share-based compensation and related payroll tax expenses and income tax adjustments, non-GAAP diluted EPS for the first quarter of 2014 was $0.34, up 183% compared to $0.12 in the first quarter of 2013.

Capital expenditures – Capital expenditures for the first quarter of 2014 were $363 million.

Cash and marketable securities – Cash and marketable securities were $12.63 billion at the end of the first quarter of 2014.

Free cash flow – Free cash flow for the first quarter of 2014 was $922 million.

CFO Transition – Facebook today also announced that David Ebersman has informed the company of his intention to step down as chief financial officer after serving in the position for almost five years. On June 1, 2014, he will be succeeded as CFO by David Wehner, currently Facebook’s Vice President, Corporate Finance and Business Planning. Ebersman will remain with the company through September to ensure a seamless transition of his responsibilities.

Wehner joined Facebook in November 2012 from Zynga, where he served as CFO. Earlier, he spent nine years at Allen & Company where he was a managing director. Wehner has a B.S. in Chemistry from Georgetown University, and an M.S. in Applied Physics from Stanford University.

«David has been a great partner in building Facebook, and I’m grateful for everything he’s done to help make the world more open and connected,» said Zuckerberg. «David set us up to operate efficiently and make the long term investments we need, and built an incredibly strong team including Dave Wehner, our next CFO. I look forward to working with Dave in his new role.»

«This has been a tough decision because Facebook is such a great company and has such a bright future ahead, but I’ve decided to move back into healthcare where I spent my career before Facebook,» Ebersman said. «It’s been a privilege working at Facebook and being part of such a great team. We have an incredibly talented finance organization, and I have complete confidence in Dave Wehner and his ability to lead the team going forward.»