Facebook Q2 Earnings Report: Strong Revenue Growth (56%) and Operating Margins (43%)

facebook q2 earnings report revenue growth 55 percent year over year chart

Facebook Q2 earnings report showed stunning growth and strong operating margins.

Facebook is growing revenues 56% year over year with best in class operating margins of 43%. Even looking at 2019, Facebook grew 72% over that time.

Facebook has over $64B in cash and focused on large end-markets such as commerce, “metaverse”, payments, AR/VR, and creators. We remain excited about Oculus as it has sold around $2.0B in sales over the last 3 quarters and is quickly becoming a major operating system analogous to IOS early days.

Here are some revenue growth and operating margins highlights from Facebook Q2 earnings report.

Growth:

– $28B in sales, +56% year-over-year

– Other revenue saw $2.0B over the last 3 quarters (key)

– 20% of Facebook is focused on Oculus.

– $116B annual revenue run rate

– Management called out commerce, payments, virtual and augmented reality priorities.

Margins:

– 43% operating margins (strong)

– $64B in cash and $573M in debt (incredible).

facebook q2 earnings report quarter operating margins strong improving chart

Twitter:  @_SeanDavid

The author or his firm may have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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