Facebook, Inc. (FB) has reported an 165.51 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $2,379 million, or $0.82 a share in the quarter, compared with $896 million, or $0.31 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $3,168 million, or $1.09 a share compared with $1,628 million or $0.57 a share, a year ago.
Revenue during the quarter surged 55.77 percent to $7,011 million from $4,501 million in the previous year period. Gross margin for the quarter expanded 192 basis points over the previous year period to 85.92 percent. Total expenses were 55.47 percent of quarterly revenues, down from 67.58 percent for the same period last year. This has led to an improvement of 1212 basis points in operating margin to 44.53 percent.
Operating income for the quarter was $3,122 million, compared with $1,459 million in the previous year period.
However, the adjusted operating income for the quarter stood at $4,156 million compared to $2,410 million in the prior year period. At the same time, adjusted operating margin improved 573 basis points in the quarter to 59.28 percent from 53.54 percent in the last year period.
"We had another good quarter," said Mark Zuckerberg, Facebook founder and chief executive officer. "We're making progress putting video first across our apps and executing our 10 year technology roadmap."
Operating cash flow improves significantly
Facebook, Inc. has generated cash of $9,758 million from operating activities during the nine month period, up 69.06 percent or $3,986 million, when compared with the last year period.
The company has spent $9,764 million cash to meet investing activities during the nine month period as against cash outgo of $6,708 million in the last year period.
Cash flow from financing activities was $1,106 million for the nine month period, up 7.59 percent or $78 million, when compared with the last year period.
Cash and cash equivalents stood at $6,038 million as on Sep. 30, 2016, up 40.16 percent or $1,730 million from $4,308 million on Sep. 30, 2015.
Working capital increases sharply
Facebook, Inc. has recorded an increase in the working capital over the last year. It stood at $27,733 million as at Sep. 30, 2016, up 59.87 percent or $10,386 million from $17,347 million on Sep. 30, 2015. Current ratio was at 11.69 as on Sep. 30, 2016, up from 10.68 on Sep. 30, 2015.
Days sales outstanding went down to 20 days for the quarter compared with 39 days for the same period last year.
At the same time, days payable outstanding went down to 23 days for the quarter from 45 for the same period last year.
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