Today’s Facebook (FB) filing [S-1] with the SEC raises several questions.
- Can FB reinvent itself at this point?
- Can FB manage its income statement with a focus on costs?
- Can FB even be classified as a growth company anymore?
- Is FB worth 50 times last year’s earnings?
Looking at March 2012 quarter results, where’s the growth?
- Operating income and net income are both the lowest in six quarters
- Net profit margin is by far the lowest in seven quarters
- All major income statement metrics are down comparing FB’s March 2012 quarter with the December 2011 quarter, which yes is seasonally high, however…
And because FB is in the pre-IPO quiet period
FB/Zuckerberg can’t say anything other than ‘trust me’
As the old Wendy’s commercial said ‘where’s the beef?’
|
Compare March 12 qtr with Dec ’11 qtr |
||||||||
|
Sept 10 |
Dec 10 |
March 11 |
June 11 |
Sept 11 |
Dec ’11 |
March 12 |
Red Flags |
|
|
Revenue ($mm) |
$467 |
$731 |
$731 |
$895 |
$954 |
$1,131 |
$1,058 |
Down |
|
Change from previous qtr |
8% |
57% |
0% |
22% |
7% |
19% |
-6% |
|
|
Operating income ($mm) |
$216 |
$437 |
$388 |
$407 |
$414 |
$548 |
$381 |
Down |
|
Change from previous qtr |
-1% |
102% |
-11% |
5% |
2% |
32% |
-30% |
|
|
Operating income % of revenue |
46% |
60% |
53% |
45% |
43% |
48% |
36% |
Down |
|
Net income ($mm) |
$131 |
$251 |
$233 |
$240 |
$227 |
$302 |
205 |
Down |
|
Change from previous qtr |
2% |
92% |
-7% |
3% |
-5% |
33% |
-32% |
|
|
Net income % of rev |
28% |
34% |
32% |
27% |
24% |
27% |
19% |
Down |
|
Change from previous qtr |
-6% |
22% |
-7% |
-16% |
-11% |
12% |
-27% |
|
