FB is up 6.5% in the after-hours after annihilating earnings expectations. Metrics were great across the board. Also, in an effort to maintain control of FB, while diluting the shit out of shares over time, the company has unveiled a plan to issue ‘C-share’, similar to that of Google.
FB announced that the board of directors has approved a proposal to amend and restate existing certificate of incorporation to create a new class of non-voting capital stock, known as the Class C capital stock. If the proposal is approved it will issue two shares of Class C capital stock as a one-time stock dividendin respect of each outstanding share of our Class A and Class B common stock. This proposal is designed to create a capital structure that will encourage Mr. Zuckerberg to remain in an active leadership role at Facebook. The adoption of the proposal is subject to the approval of our stockholders at our 2016 Annual Meeting of Stockholders to be held on June 20, 2016.
I love how they word it. They are simply stripping shareholders of their power in order to keep Mark interested in Facebook.
This is corporate governance run amuck. I am surprised people go along with this stuff without even protesting.
Via Briefing:
- Reports Q1 (Mar) earnings of $0.77 per share, $0.15 better than the Capital IQ Consensus of $0.62; revenues rose 51.8% year/year to $5.38 bln vs the $5.26 bln Capital IQ Consensus.
- Advertising revenue increased 57% y/y to $5.2 bln.
- Daily active users (DAUs)- DAUs were 1.09 billion on average for March 2016, an increase of 16% year-over-year.
- Mobile DAUs- Mobile DAUs were 989 million on average for March 2016, an increase of 24% year-over-year.
- Monthly active users (MAUs- MAUs were 1.65 billion as of March 31, 2016, an increase of 15% year-over-year.
- Mobile MAUs- Mobile MAUs were 1.51 billion as of March 31, 2016, an increase of 21% year-over-year.
- Mobile advertising revenue- Mobile advertising revenue represented approximately 82% of advertising revenue for the first quarter of 2016, up from 73% of advertising revenue in the first quarter of 2015.
- Capital expenditures- Capital expenditures for the first quarter of 2016 were $1.13 billion.
- Free cash flow for the first quarter of 2016 was $1.85 billion.
Impressive. They might be the only ones who have gotten social right.
Rejoice, for there will be no suicides at $FB today.
Look at that Free Cash Flow figure for a supposed boring social network. Let’s see ChatSnap or whatever get that. As I’ve expressed before, Zuck is as dialed in as any CEO out there (extra Michael Jordan shrug).
Zuckerberg is a twat.
It is eerie, in private conversation, I have mentioned a product, and next time I log onto Facebook, that product is showcased in the ads.
Perhaps your conversations are not as private as you thought.
You can always screw shareholders when you are delivering the earnings. The hangover is hell.