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Tag: Mark Zuckerberg

  • Here Is Mark Zuckerberg’s Plan To Make The Internet More Affordable

    Here Is Mark Zuckerberg’s Plan To Make The Internet More Affordable

    The Internet is expensive. Sure, you may think that the $60 you pay a month for cable isn’t that much, but what about the estimated 5 billion people around the world who don’t even have access to basic Internet services. The costs of connecting those people to the world wide Web are immense, and nobody wants to foot the bill. That’s where Mark Zuckerberg’s Internet.org comes in.

    You may recall that in late August, Zuckerberg started up a new initiative called Internet.org that would aim to connect the entire planet to the Internet. It’s an incredibly ambitious idea, and an expensive one at that. To help with the cost problem, he proposed a number of ideas that would drive down the price of data delivery. Now he’s back with an in-depth explanation of these proposals.

    If you want a recap, Zuckerberg says that he’s planning on making the Internet 100 times more affordable in two ways. First, he’s going to make Internet delivery 10 times cheaper, and second, he’s going to make data ten times cheaper. He hopes to do this by building out better cell towers that can deliver stronger signals while making better use of the white spectrum currently available. As for data, he wants to use local caching and data compression to make sure that mobile devices only have to use 40 percent of the data that they currently use.

    If these plans come to fruition, we may just have a world where the Internet is made available to more people. That’s only a good thing as increased Internet access will benefit everybody. To take an example from the above video, just imagine farmers in Africa being able to coordinate with agriculture scientists from halfway across the world on how to best increase crop yields. The same Internet access that we take for granted daily would be a revolutionary force of change in the lives of millions without it.

    It’s still early days for Internet.org, however, and it’s going to need all the help it can get to achieve it’s goals. You can’t connect the entire world to the Internet overnight, but it’s something that’s well worth the time and effort.

    [Image: Internet.org/YouTube]

  • Mark Zuckerberg Wants To Make The Internet Available To All

    Mark Zuckerberg Wants To Make The Internet Available To All

    The Internet is the single greatest invention in the history of mankind. It has the power to change how we see the world by exposing us to different ideas and cultures without ever leaving our home. It’s that transformative power that makes the Internet so special, and why it’s imperative that more people get connected. Unfortunately, there are a few roadblocks standing in the way of that.

    Mark Zuckerberg announced today a new initiative called Internet.org that aims to tear down the roadblocks that prevent 5 billion people from gaining access to the Internet. He’s working with MediaTek, Nokia, Opera, Qualcomm and Samsung to help develop new ideas and business models that will make it affordable for everybody all over the world to connect to the Internet and start sharing with the world.

    “Everything Facebook has done has been about giving all people around the world the power to connect,” Zuckerberg said. “There are huge barriers in developing countries to connecting and joining the knowledge economy. Internet.org brings together a global partnership that will work to overcome these challenges, including making internet access available to those who cannot currently afford it.”

    So, how will Facebook and its allies achieve such a lofty goal? In a document penned by Zuckerberg, he proposes a three pronged approach to making Internet access more accessible and affordable to all:

  • Making internet access affordable by making it more efficient to deliver data.
  • Using less data by improving the efficiency of the apps and experiences we use.
  • Helping businesses drive internet access by developing a new model to get people online.

    • To make Internet access more affordable, he proposes that we continue investing in new technologies, like network extension technology, that make it easier to transmit data signals without increasing the cost. Right now, it costs far too much money for people in undeveloped countries to use data plans with their smartphones. With this technology, it could finally become cheap enough for everybody with a smartphone to access the Internet.

    Zuckerberg also points to the Open Compute Project and the upcoming white space spectrum auction as initiatives that could very well drive down the price of data delivery by standardizing how we deliver data.

    Of course, affordable Internet access means little when our apps still use way too much data. To that end, Zuckerberg calls on the development community to come up with news way to make apps more efficient. He hopes to do this through data caching, data compression and efficiency optimization.

    Finally, Zuckerberg addresses the final roadblock on the way to making Internet access available and affordable to all – businesses and governments. That’s why Facebook has partnered with some of the biggest names in Internet technology, like Opera, Qualcomm an MediaTek, to “develop joint projects, share knowledge and mobilize industry and governments to bring the world online.” One of those projects is the zero-rating data model which allows Internet companies to deliver free data to customers when using Facebook.

    In short, Internet.org is by far the most ambitious plan yet (Project Loon notwithstanding) to get the rest of the world connected. It may also have an effect on current markets by driving down prices and improving access to those in developed nations who still can’t get anything but the most basic of services.

  • Facebook’s Video Ads Are Going to Annoy You, Zuck Knows This, and He’s Working on Making Them Less Intrusive

    Facebook’s Video Ads Are Going to Annoy You, Zuck Knows This, and He’s Working on Making Them Less Intrusive

    Facebook is going to launch video ads in your news feed before the end of the year – that’s pretty much inevitable. And it seems that the main thing preventing the company from launching them right now is the fear that they will piss everyone off.

    The Wall Street Journal quotes sources familiar with the new ads, who claim that Mark Zuckerberg and his team of engineers are “toiling” over how to make the video ads less distracting – or at least tolerable to the vast majority of Facebook users. Of course, the ads need to make an impact and need to be seen by users, but Facebook has to balance that with the fact that they could drive some people away if the new video ads are too annoying.

    And it’s not that Facebook is simple taking their time. The WSJ indicates that there has actually been a real delay. Sources claim that some advertisers had already created video ads, thinking that they would be able to run this summer, only to be forced to “find alternative marketing plans for time-sensitive products after delays.”

    Part of the delay is so that Facebook can upgrade their video technology so that the ads can load quickly.

    When the ads finally debut, they won’t dominate your news feed. Ad executives briefed on Facebook’s plans said that the video ads will autoplay – but without sound. Users will only see ads from one advertiser per day, but could see up to three from that one advertiser.

    Advertisers will reportedly pay between $1 and $2.5 million per day to run the ads.

    Although the ads haven’t even surfaced yet, some analysts project that they could generate up to a billion dollars in revenue for Facebook in 2014.

  • Facebook Isn’t Losing Popularity Among Teens, Says Zuckerberg

    Facebook Isn’t Losing Popularity Among Teens, Says Zuckerberg

    The report of the death of Facebook’s popularity among teens is most definitely an exaggeration, at least according to Mark Zuckerberg.

    The narrative posited by various recent studies is that Facebook is just not cool anymore, and teens specifically have been migrating to other social platforms. In Wednesday’s Facebook earnings call, Zuckerberg denied this claim, stating that teens’ use of Facebook has held steady over the past year-and-a-half.

    “One specific demographic I want to address is U.S. teens. There has been a lot of speculation and reporting that fewer teens are using Facebook. But based on our data, that just isn’t true. It’s difficult to measure this perfectly, since some young people lie about their age. But based on the best data we have, we believe that we are close to fully penetrated in the U.S. teen demographic for a while, and the number of teens using Facebook on both a daily and monthly basis has been steady over the past year-and-a-half,” said Zuckerberg.

    “Teens also remain really highly engaged using Facebook. Now it’s also worth mentioning that these stats are for Facebook only. Instagram is growing quickly, as well, so if you combine the two services together, we believe our engagement and share of time spent are likely growing quickly throughout the world.”

    Of course, Facebook is going to face saturation issues in general (1.15 billion monthly active users now) – so the fact that teen use isn’t growing shouldn’t be that surprising. But as long as it at least holds, Facebook can rest assured that teens aren’t getting bored with it.

    This year, multiple reports have emerged that say teens are, in fact, abandoning ship. Earlier this year, one such survey of teen social media use saw Tumblr surpass Facebook for the first time ever. More recently, a Piper Jaffray survey echoed those findings. It said that Facebook was the most popular social network for 33% of teens, down from 42% back in the Fall of last year.

  • Facebook Posts $1.81 Billion Revenue, Ad Revenue Up 61%

    Facebook Posts $1.81 Billion Revenue, Ad Revenue Up 61%

    Facebook just released its Q2 earnings report, including $1.81 billion in revenue, beating Wall Street expectations. EPS (Non-GAAP) were $0.19 for the quarter, also beating expectations.

    Revenue from advertising was $1.60 billion (88% of total revenue and up 61% year-over-year). Mobile ad revenue was about 41% of ad revenue for the quarter, while payments and other fees revenue was $214 million (up 11% year-over-year).

    The company announced 699 million daily active users for June (up 27% year-over-year), and 1.15 billion monthly active users (up 21% year-over-year). Mobile monthly active users were 819 million at the end of June (up 51% year-over-year). Mobile daily active users were 469 million on average for June.

    This quarter’s obligatory Mark Zuckerberg quote is: “We’ve made good progress growing our community, deepening engagement and delivering strong financial results, especially on mobile. The work we’ve done to make mobile the best Facebook experience is showing good results and provides us with a solid foundation for the future.”

    Here’s the release in its entirety:

    MENLO PARK, Calif., July 24, 2013 /PRNewswire/ — Facebook, Inc. (NASDAQ: FB) today reported financial results for the second quarter, which ended June 30, 2013.

    “We’ve made good progress growing our community, deepening engagement and delivering strong financial results, especially on mobile,” said Mark Zuckerberg, Facebook founder and CEO. “The work we’ve done to make mobile the best Facebook experience is showing good results and provides us with a solid foundation for the future.”

    Second Quarter 2013 Financial Summary

    In millions, except percentages and per share amounts Q2’12 Q2’13 YTD’12 YTD’13
    Revenue $ 1,184 $ 1,813 $ 2,242 $ 3,271
    Income (Loss) from Operations
    GAAP $ (743) $ 562 $ (362) $ 935
    Non-GAAP $ 515 $ 794 $ 1,000 $ 1,357
    Operating Margin
    GAAP (63%) 31% (16%) 29%
    Non-GAAP 43% 44% 45% 41%
    Net Income (Loss)
    GAAP $ (157) $ 333 $ 48 $ 552
    Non-GAAP $ 295 $ 488 $ 582 $ 800
    Diluted Earnings (Loss) per Share (EPS)
    GAAP $ (0.08) $ 0.13 $ 0.02 $ 0.22
    Non-GAAP $ 0.12 $ 0.19 $ 0.24 $ 0.32

    Second Quarter 2013 Operational Highlights

    • Daily active users (DAUs) were 699 million on average for June 2013, an increase of 27% year-over-year.
    • Monthly active users (MAUs) were 1.15 billion as of June 30, 2013, an increase of 21% year-over-year.
    • Mobile MAUs were 819 million as of June 30, 2013, an increase of 51% year-over-year.  Mobile DAUs were 469 million on average for June 2013.

    Recent Business Highlights

    • Surpassed 1 million active advertisers on Facebook, driven by significant growth in local businesses.
    • Introduced video for Instagram and saw 5 million videos uploaded in the first 24 hours.
    • Facebook for Every Phone has now passed 100 million monthly active users.  In just two years, Facebook for Every Phone has successfully put Facebook into the hands of millions of people around the world with limited access to the Internet, giving them the power to connect and share.
    • Launched products including Verified Pages, hashtags and embedded posts to help people on Facebook connect with their friends about what’s taking place all over the world.
    • Announced that there have now been over 100,000 apps built on Parse, a cloud-based platform that provides scalable cross-platform services and tools for developers to enable them to build apps that span mobile platforms and devices.
    • Facebook’s data center in Lulea, Sweden, began serving live user traffic around the world using Facebook’s Open Compute Project designs and renewable energy.

    Second Quarter 2013 Financial Highlights

    Revenue – Revenue for the second quarter of 2013 totaled $1.81 billion, an increase of 53%, compared with $1.18 billion in the second quarter of 2012.

    • Revenue from advertising was $1.60 billion, representing 88% of total revenue and a 61% increase from the same quarter last year.
    • Mobile advertising revenue represented approximately 41% of advertising revenue for the second quarter of 2013.
    • Payments and other fees revenue was $214 million for the second quarter of 2013, an increase of 11% from the same quarter last year.

    Costs and expenses – GAAP costs and expenses for the second quarter of 2013 were $1.25 billion, a decrease of 35% from the second quarter of 2012, as costs in the second quarter of 2012 were materially impacted by the share-based compensation expense resulting from our IPO.  Excluding share-based compensation and related payroll tax expenses, non-GAAP costs and expenses were $1.02 billion in the second quarter, up 52% compared to $669 million for the second quarter of 2012.

    Income (loss) from operations – For the second quarter of 2013, GAAP income from operations was $562 million, compared to a GAAP loss from operations of $743 million in the second quarter of 2012. Excluding share-based compensation and related payroll tax expenses, non-GAAP income from operations for the second quarter was $794 million, up 54% compared to $515 million for the second quarter of 2012.

    Operating margin – GAAP operating margin was 31% for the second quarter of 2013, compared to negative 63% in the second quarter of 2012. Excluding share-based compensation and related payroll tax expenses, non-GAAP operating margin was 44% for the second quarter of 2013, compared to 43% for the second quarter of 2012.

    Provision for income taxes – GAAP income tax expense for the second quarter of 2013 was $212 million, representing a 39% effective tax rate. Excluding share-based compensation and related payroll tax expenses, the non-GAAP effective tax rate would have been approximately 37%.

    Net income (loss) and EPS – For the second quarter of 2013, GAAP net income was $333 million, compared to a net loss of$157 million for the second quarter of 2012. Excluding share-based compensation and related payroll tax expenses and income tax adjustments, non-GAAP net income for the second quarter of 2013 was $488 million, up 65% compared to $295 million for the second quarter of 2012.  GAAP diluted EPS was $0.13 in the second quarter of 2013, compared to a loss per share of $0.08in the second quarter of 2012.  Excluding share-based compensation and related payroll tax expenses and income tax adjustments, non-GAAP diluted EPS for the second quarter of 2013 was $0.19, up 58% compared to $0.12 in the second quarter of 2012.

    Capital expenditures – Capital expenditures for the second quarter of 2013 were $268 million, a 35% decrease from the second quarter of 2012.

    Cash and marketable securities – Cash and marketable securities were $10.3 billion at the end of the second quarter of 2013.

    Webcast and Conference Call Information

    Facebook will host a conference call to discuss the results at 2 p.m. PT / 5 p.m. ET today. The live webcast can be accessed at the Facebook Investor Relations website at investor.fb.com, along with the company’s earnings press release, financial tables and slide presentation.  Facebook uses the investor.fb.com website as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD.

    Following the call, a replay will be available at the same website. A telephonic replay will be available for one week following the conference call at + 1 (404) 537-3406 or + 1 (855) 859-2056, conference ID 99420501.

    About Facebook

    Founded in 2004, Facebook’s mission is to give people the power to share and make the world more open and connected. People use Facebook to stay connected with friends and family, to discover what’s going on in the world, and to share and express what matters to them.

    Contacts

    Investors:
    Deborah Crawford
    [email protected] / investor.fb.com

    Press:
    Ashley Zandy
    [email protected] / newsroom.fb.com

    Forward Looking Statements

    This press release contains forward-looking statements regarding our future business expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including: our ability to retain or increase users and engagement levels, particularly mobile engagement; our ability to monetize our mobile products; risks associated with new product development and introduction; our ability to expand the Facebook Platform; competition; privacy concerns; security breaches; and our ability to manage growth and geographically-dispersed operations. These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed under the caption “Risk Factors” in our Quarterly Report on Form 10-Q filed with the SEC on May 2, 2013, which is available on our Investor Relations website at investor.fb.com and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2013. In addition, please note that the date of this press release is July 24, 2013, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events.

    Non-GAAP Financial Measures

    To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: total revenue and advertising revenue excluding foreign exchange effect, non-GAAP costs and expenses, non-GAAP income from operations; non-GAAP net income; non-GAAP diluted shares; non-GAAP diluted earnings per share; non-GAAP operating margin; non-GAAP effective tax rate; and free cash flow. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, many of the adjustments to our GAAP financial measures reflect the exclusion of items, specifically share-based compensation expense and payroll tax related to share-based compensation expense and the related income tax effects, that are recurring and will be reflected in our financial results for the foreseeable future. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures.

    We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business.

    We exclude the following items from one or more of our non-GAAP financial measures:

    Share-based compensation expense. We exclude share-based compensation expense because we believe that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In particular, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use under FASB ASC Topic 718, we believe that providing non-GAAP financial measures that exclude this expense allow investors the ability to make more meaningful comparisons between our operating results and those of other companies. Accordingly, we believe that excluding this expense provides investors and management with greater visibility to the underlying performance of our business operations, facilitates comparison of our results with other periods, and may also facilitate comparison with the results of other companies in our industry.

    Payroll tax expense related to share-based compensation. We exclude payroll tax expense related to share-based compensation expense because, without excluding these tax expenses, investors would not see the full effect that excluding share-based compensation expense had on our operating results. These expenses are tied to the exercise or vesting of underlying equity awards and the price of our common stock at the time of vesting or exercise, which factors may vary from period to period independent of the operating performance of our business. Similar to share-based compensation expense, we believe that excluding this payroll tax expense provides investors and management with greater visibility to the underlying performance of our business operations and facilitates comparison with other periods as well as the results of other companies.

    Income tax effect of share-based compensation and related payroll tax expenses. We believe excluding the income tax effect of non-GAAP adjustments assists investors and management in understanding the tax provision related to those adjustments and provides useful supplemental information regarding the underlying performance of our business operations.

    Assumed preferred stock conversion. As a result of our IPO in May 2012, all outstanding shares of preferred stock were automatically converted into shares of Class B common stock. Consequently, non-GAAP diluted shares and earnings per share for the three and six months ended June 30, 2012 have been calculated assuming this conversion for periods prior to the IPO, which we believe facilitates comparison between periods.

    Dilutive equity awards excluded from GAAP. In our calculation of non-GAAP weighted average shares used to compute earnings per share attributable to Class A and Class B common stockholders for the three months ended June 30, 2012, we give effect to antidilutive RSUs and stock options that are excluded from GAAP weighted average shares due to our reporting of a net loss.  We also include the effect of unvested RSUs in periods prior to the IPO in such calculation for the three and six months ended June 30, 2012, the number of which is substantial due to the terms of RSUs granted prior to 2011. We believe including these awards facilitates comparison between periods.

    Foreign exchange effect on revenue. We translate revenue for the three and six months ended June 30, 2013 using prior year exchange rates, which we believe is a useful metric that facilitates comparison to our historical performance.

    Purchases of property and equipment; Property and equipment acquired under capital leases. We subtract both purchases of property and equipment and property and equipment acquired under capital leases in our calculation of free cash flow because we believe that these two items collectively represent the amount of property and equipment we need to procure to support our business, regardless of whether we finance such property or equipment with a capital lease. We believe that this methodology can provide useful supplemental information to help investors better understand underlying trends in our business.

    For more information on our non-GAAP financial measures and a reconciliation of such measures to the nearest GAAP measure, please see the “Reconciliation of Non-GAAP Results to Nearest GAAP Measures” table in this press release.

     

    FACEBOOK, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In millions, except for per share amounts)
    (Unaudited)
    Three Months Ended Six Months Ended
    June 30, June 30,
    2012 2013 2012 2013
    Revenue $ 1,184 $ 1,813 $ 2,242 $ 3,271
    Costs and expenses:
    Cost of revenue 367 465 644 878
    Research and development 705 344 858 637
    Marketing and sales 392 269 535 472
    General and administrative 463 173 567 349
    Total costs and expenses 1,927 1,251 2,604 2,336
    Income (loss) from operations (743) 562 (362) 935
    Interest and other (expense) income, net:
    Interest expense (10) (14) (24) (29)
    Other (expense) income, net (12) (3) 3 (8)
    Income (loss) before provision for income taxes (765) 545 (383) 898
    (Provision for) benefit from income taxes 608 (212) 431 (346)
    Net income (loss) $ (157) $ 333 $ 48 $ 552
    Less: Net income attributable to participating securities – 2 21 3
    Net income (loss) attributable to Class A and Class B common stockholders $ (157) $ 331 $ 27 $ 549
    Earnings (loss) per share attributable to Class A and Class B
    common stockholders:
    Basic $ (0.08) $ 0.14 $ 0.02 $ 0.23
    Diluted $ (0.08) $ 0.13 $ 0.02 $ 0.22
    Weighted-average shares used to compute earnings (loss) per share
    attributable to Class A and Class B common stockholders:
    Basic 1,879 2,407 1,613 2,397
    Diluted 1,879 2,502 1,792 2,499
    Share-based compensation expense included in costs and expenses:
    Cost of revenue $ 66 $ 11 $ 71 $ 19
    Research and development 545 151 605 268
    Marketing and sales 232 33 251 57
    General and administrative 263 29 282 50
    Total share-based compensation expense $ 1,106 $ 224 $ 1,209 $ 394
    Payroll tax expenses related to share-based compensation included in costs and expenses:
    Cost of revenue $ 6 $ – $ 6 $ 1
    Research and development 48 7 49 18
    Marketing and sales 25 1 25 5
    General and administrative 73 – 73 4
    Total payroll tax expenses related to share-based compensation $ 152 $ 8 $ 153 $ 28
    FACEBOOK, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In millions)
    (Unaudited)
    December 31, June 30,
    2012 2013
    Assets
    Current assets:
    Cash and cash equivalents $ 2,384 $ 3,001
    Marketable securities 7,242 7,251
    Accounts receivable 719 775
    Income tax refundable 451 7
    Prepaid expenses and other current assets 471 387
    Total current assets 11,267 11,421
    Property and equipment, net 2,391 2,577
    Goodwill and intangible assets, net 1,388 1,631
    Other assets 57 95
    Total assets $ 15,103 $ 15,724
    Liabilities and stockholders’ equity
    Current liabilities:
    Accounts payable $ 65 $ 55
    Platform partners payable 169 172
    Accrued expenses and other current liabilities 423 505
    Deferred revenue and deposits 30 32
    Current portion of capital lease obligations 365 316
    Total current liabilities 1,052 1,080
    Capital lease obligations, less current portion 491 351
    Long-term debt 1,500 1,500
    Other liabilities 305 444
    Total liabilities 3,348 3,375
    Stockholders’ equity
    Common stock and additional paid-in capital 10,094 10,167
    Accumulated other comprehensive income (loss) 2 (29)
    Retained earnings 1,659 2,211
    Total stockholders’ equity 11,755 12,349
    Total liabilities and stockholders’ equity $ 15,103 $ 15,724
    FACEBOOK, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In millions)
    (Unaudited)
    Three Months Ended Six Months Ended
    June 30, June 30,
    2012 2013 2012 2013
    Cash flows from operating activities
    Net income (loss) $ (157) $ 333 $ 48 $ 552
    Adjustments to reconcile net income (loss) to net cash provided by operating activities:
    Depreciation and amortization 139 230 249 463
    Lease abandonment expense 3 57 3 65
    Loss on disposal or write-off of equipment 3 11 4 20
    Share-based compensation 1,106 224 1,209 394
    Deferred income taxes (350) 26 (374) 19
    Tax benefit from share-based award activity 327 89 381 148
    Excess tax benefit from share-based award activity (327) (93) (381) (155)
    Changes in assets and liabilities:
    Accounts receivable (105) (116) (40) (62)
    Income tax refundable (567) 419 (567) 444
    Prepaid expenses and other current assets 26 10 (7) (16)
    Other assets (3) (8) (9) (44)
    Accounts payable (5) 1 (8) 2
    Platform partners payable (22) (18) (15) 3
    Accrued expenses and other current liabilities 184 42 186 9
    Deferred revenue and deposits (8) 2 (5) 2
    Other liabilities (4) 113 7 197
    Net cash provided by operating activities 240 1,322 681 2,041
    Cash flows from investing activities
    Purchases of property and equipment (413) (268) (866) (595)
    Purchases of marketable securities (6,081) (1,952) (6,957) (3,460)
    Sales of marketable securities 59 576 128 1,275
    Maturities of marketable securities 539 1,271 1,106 2,174
    Investments in non-marketable equity securities (2) (1) (3) (1)
    Acquisitions of businesses, net of cash acquired, and purchases of intangible assets (550) (122) (575) (221)
    Changes in restricted cash and deposits (2) (2) (3) 4
    Net cash used in investing activities (6,450) (498) (7,170) (824)
    Cash flows from financing activities
    Net proceeds from issuance of common stock 6,761 – 6,761 –
    Taxes paid related to net share settlement of equity awards – (153) – (558)
    Proceeds from exercise of stock options 4 2 9 10
    Proceeds from sale and lease-back transactions 20 – 82 –
    Principal payments on capital lease obligations (72) (91) (143) (200)
    Excess tax benefit from share-based award activity 327 93 381 155
    Net cash provided by (used in) financing activities 7,040 (149) 7,090 (593)
    Effect of exchange rate changes on cash and cash equivalents (14) 1 (15) (7)
    Net increase in cash and cash equivalents 816 676 586 617
    Cash and cash equivalents at beginning of period 1,282 2,325 1,512 2,384
    Cash and cash equivalents at end of period $ 2,098 $ 3,001 $ 2,098 $ 3,001
    Supplemental cash flow data
    Cash paid during the period for:
    Interest $ 10 $ 14 $ 19 $ 26
    Income taxes $ 8 $ 9 $ 182 $ 18
    Cash received during the period for:
    Income taxes $ – $ 419 $ – $ 419
    Non-cash investing and financing activities:
    Net change in accounts payable and accrued expenses and other current liabilities related to property and equipment additions $ (169) $ (52) $ (59) $ (5)
    Property and equipment acquired under capital leases $ 52 $ – $ 90 $ 11
    Fair value of shares issued related to acquisitions of businesses and other assets $ 18 $ 44 $ 25 $ 77
    Reconciliation of Non-GAAP Results to Nearest GAAP Measures
    (In millions, except for number of shares)
    (Unaudited)
    Three Months Ended Six Months Ended
    June 30, June 30,
    2012 2013 2012 2013
    GAAP revenue $ 1,184 $ 1,813 $ 2,242 $ 3,271
    Foreign exchange effect on 2013 revenue using 2012 rates 13 17
    Revenue excluding foreign exchange effect $ 1,826 $ 3,288
    GAAP revenue year-over-year change % 53% 46%
    Revenue excluding foreign exchange effect year-over-year change % 54% 47%
    GAAP advertising revenue $ 992 $ 1,599 $ 1,864 $ 2,844
    Foreign exchange effect on 2013 advertising revenue using 2012 rates 13 16
    Advertising revenue excluding foreign exchange effect $ 1,612 $ 2,860
    GAAP advertising revenue year-over-year change % 61% 53%
    Advertising revenue excluding foreign exchange effect year-over-year change % 63% 53%
    GAAP costs and expenses $ 1,927 $ 1,251 $ 2,604 $ 2,336
    Share-based compensation expense (1,106) (224) (1,209) (394)
    Payroll tax expenses related to share-based compensation (152) (8) (153) (28)
    Non-GAAP costs and expenses $ 669 $ 1,019 $ 1,242 $ 1,914
    GAAP income (loss) from operations $ (743) $ 562 $ (362) $ 935
    Share-based compensation expense 1,106 224 1,209 394
    Payroll tax expenses related to share-based compensation 152 8 153 28
    Non-GAAP income from operations $ 515 $ 794 $ 1,000 $ 1,357
    GAAP net income (loss) $ (157) $ 333 $ 48 $ 552
    Share-based compensation expense 1,106 224 1,209 394
    Payroll tax expenses related to share-based compensation 152 8 153 28
    Income tax adjustments (806) (77) (828) (174)
    Non-GAAP net income $ 295 $ 488 $ 582 $ 800
    GAAP diluted shares 1,879 2,502 1,792 2,499
    Assumed preferred stock conversion1 273 – 409 –
    Dilutive securities excluded due to net loss 177 – – –
    Dilutive equity awards excluded from GAAP1 122 – 185 –
    Non-GAAP diluted shares 2,451 2,502 2,386 2,499
    GAAP diluted earnings (loss) per share $ (0.08) $ 0.13 $ 0.02 $ 0.22
    Net income attributable to participating securities – – 0.01 –
    Non-GAAP adjustments to net (loss) income 0.24 0.06 0.29 0.10
    Non-GAAP adjustments to diluted shares (0.04) – (0.08) –
    Non-GAAP diluted earnings per share $ 0.12 $ 0.19 $ 0.24 $ 0.32
    GAAP operating margin (63%) 31% (16%) 29%
    Share-based compensation expense 93% 12% 54% 12%
    Payroll tax expenses related to share-based compensation 13% -% 7% 1%
    Non-GAAP operating margin 43% 44% 45% 41%
    GAAP income (loss) before (provision for) benefit from income taxes $ (765) $ 545 $ (383) $ 898
    GAAP (provision for) benefit from income taxes 608 (212) 431 (346)
    GAAP effective tax rate 79% 39% 113% 39%
    GAAP income (loss) before (provision for) benefit from income taxes $ (765) $ 545 $ (383) $ 898
    Share-based compensation and related payroll tax expenses 1,258 232 1,362 422
    Non-GAAP income before provision for income taxes $ 493 $ 777 $ 979 $ 1,320
    Non-GAAP provision for income taxes 198 289 397 520
    Non-GAAP effective tax rate 40% 37% 41% 39%
    Net cash provided by operating activities $ 240 $ 1,322 $ 681 $ 2,041
    Purchases of property and equipment (413) (268) (866) (595)
    Property and equipment acquired under capital leases (52) – (90) (11)
    Free cash flow $ (225) $ 1,054 $ (275) $ 1,435
    1 Gives effect to assumed preferred stock conversion and other dilutive equity awards prior to our IPO for comparability

     

     

    SOURCE Facebook, Inc.

  • Mark Zuckerberg & 700 Facebookers Marched in San Francisco’s Pride Parade

    Mark Zuckerberg & 700 Facebookers Marched in San Francisco’s Pride Parade

    Facebook employees marching in San Francisco’s annual gay pride parade is nothing new – but CEO Mark Zuckerberg participating is something new.

    At Sunday’s Pride Parade, Zuck led a giant crew of Facebook employees, more than 700, through the streets of downtown San Francisco. That’s more than 300 more employees than Facebook had last year, and more than 10 times as many participants the company sent back in 2011.

    San Francisco’s Lesbian Gay Bisexual Transgender Pride Celebration has been held every year since 1972 (under a few different names over the course of the years). The celebration commemorates the famous Stonewall Inn rebellion in New York City’s Greenwich Village back in 1969. The celebration, which culminates in the Pride Parade, is one of the largest LGBT pride events in the world.

    Of course, this year’s Pride Parade had a little bit of extra significance, considering the U.S. Supreme Court’s recent rulings on the unconstitutionality of the Defense of Marriage Act.

    On that day, Zuckerberg had this to say on Facebook:

    “I’m proud that our country is moving in the right direction, and I’m happy for so many of my friends and their families. #PrideConnectsUs”

    [Photos via via / Business Insider]

  • Mark Zuckerberg’s FWD.us Releases New Pro-Immigration Ad

    Mark Zuckerberg’s FWD.us Releases New Pro-Immigration Ad

    The immigration debate is heating up in Washington again as President Obama has asked Congress to put a bill on his desk before summer’s end. One of the largest proponents of immigration reform – Mark Zuckerberg’s FWD.us – is now doubling down with a new ad campaign.

    Central to the campaign is a new TV ad called “Emma.” The title is a reference to Emma Lazarus, the poet who wrote The New Colossus. The sonnet, alongside the Statue of Liberty, have been symbols of hope for immigrants for over a century now. The new ad is obviously trying to reignite this association for a modern era.

    In his post about the ad on Facebook, Zuckerberg said that immigration reform “is our chance to keep America a magnet for the world’s brightest and hardest working people.”

    That immigration reform is taking longer than expected, however, as lawmakers on both sides are finding it hard to come to an agreement on a myriad of issues. The latest concern has some lawmakers worried that the bill would have a negative effect on the economy. Most of those fears were put to rest on Tuesday when the non-partisan Congressional Budget Office said the Senate bill would boost the economy while simultaneously lowering the deficit.

    It’s good news for Facebook and other tech companies that have been pushing for comprehensive immigration reform since last year, but the tech industry isn’t the only sector that has a voice in the debate. Immigration affects pretty much every facet of American life so Zuckerberg and FWD.us will have to convince Congress that its needs are among the most important going forward.

    Will this ad do that? Probably not, but it at least looks nice.

  • ‘Terms And Conditions May Apply’ Gets New Trailer (Featuring Classic Mark Zuckerberg)

    ‘Terms And Conditions May Apply’ Gets New Trailer (Featuring Classic Mark Zuckerberg)

    There’s a new trailer out for the documentary, “Terms and Conditions May Apply”. The film, which focuses on major Internet companies like Google, Facebook and Twitter, and the user privacy associated with them, premiered at Sundance earlier this year.

    The movie was made by Cullen Hoback, who made Monster Camp, and FrICTION.

    Obviously user privacy is a pretty big issue right now in light of recent events. This should only help the film’s release.

  • Mark Zuckerberg to Host Fundraiser for Senate Hopeful Cory Booker

    Mark Zuckerberg to Host Fundraiser for Senate Hopeful Cory Booker

    Facebook CEO Mark Zuckerberg is once again inserting himself into the New Jersey political scene – but this time it’s on the completely opposite side of the aisle.

    Bloomberg reports that Zuckerberg and his wife Priscilla Chan will soon host a fundraiser for Newark Mayor and Senate hopeful Cory Booker..

    “Mark and Priscilla are hosting a fundraiser for Mayor Booker in the coming days,” a Facebook spokesperson told Bloomberg.

    Booker is running to replace recently-deceased Democrat Frank Lautenberg in the U.S. Senate.

    If you recall, this isn’t the first fundraiser that Zuckerberg has staged for a prominent New Jersey politician. Back in February, he hosted a fundraiser for New Jersey Governor Chris Christie at his Palo Alto home.

    It’s worth noting that Zuckerberg is throwing his weight behind politicians from across the spectrum – Christie being a Republican and Booker being a Democrat.

    Zuckerberg doesn’t just have a history in New Jersey politics – but in Newark, specifically. Back in 2010 the Facebook CEO donated $100 million to the struggling Newark public school system. Since then, he’s been linked to both Christie and Booker.

    Booker just officially announced his Senate bid last week.

  • Instagram Will Probably Hold Off on the Ads for Now, But It’s Not for Lack of Interest

    Instagram Will Probably Hold Off on the Ads for Now, But It’s Not for Lack of Interest

    Facebook CEO Mark Zuckerberg briefly discussed Instagram at yesterday’s Q1 earnings call, and the takeaway is that big brands want more commercialization, but the Facebook-owned company is content with a growth strategy at the time being. That means no ads on Instagram…for now.

    “They’re really doing well and growing quickly and that is the right focus for them,” Zuckerberg said. “They have the opportunity to…build community. I am really optimistic about the business and the opportunities.”

    He went on to say that the addition of ads could possibly hamper Instagram’s growth. Instagram just surpassed 100 million monthly active users, and the photo-sharing app is growing at a faster rate than Facebook did at this time in its life.

    According to Zuckerberg, it’s not that Instagram isn’t drawing any interest from businesses looking to advertise. “Big brands are approaching us,” he said.

    You may remember that Facebook has to tread carefully when approaching the topic of ads on Instagram. Last year, Instagram users were up in arms over some proposed changes to the Instagram privacy policy. Originally, the company wanted to add this clause to the terms:

    Some or all of the Service may be supported by advertising revenue. To help us deliver interesting paid or sponsored content or promotions, you agree that a business or other entity may pay us to display your username, likeness, photos (along with any associated metadata), and/or actions you take, in connection with paid or sponsored content or promotions, without any compensation to you.

    This led to a mostly misguided outrage that Instagram was going to sell users’ photos. What did deserve outrage was Instagram’s tricky, vague, lawyerly language that attempted to describe a future ad product that didn’t yet exist.

    Co-founder Kevin Systrom ended up apologizing, saying they were wrong to put the cart before the horse.

    “Going forward, rather than obtain permission from you to introduce possible advertising products we have not yet developed, we are going to take the time to complete our plans, and then come back to our users and explain how we would like for our advertising business to work.”

    Instagram will be properly monetized, it’s inevitable. Facebook has already put way too much into the acquisition and Instagram is already such a powerful social channel. But for now, at least, it looks like Zuck is fine to let it grow.

  • Facebook Revenue Up 38%, Ad Revenue Up 43%

    Facebook Revenue Up 38%, Ad Revenue Up 43%

    Facebook released its Q1 earnings report on Wednesday, including revenue of $1.46 billion, an increase of 38% year-over-year. Revenue from advertising was $1.25 billion (85% of total revenue), up 43% year-over-year. Mobile advertising accounted for 30% of advertising revenue for the quarter. Revenue from Payments and other fees was $213 million.

    The obligatory Mark Zuckerberg quote is: “We’ve made a lot of progress in the first few months of the year. We have seen strong growth and engagement across our community and launched several exciting products.”

    Facebook also dropped some new user numbers. Daily active users were 665 million on average for March, up 26% year-over-year. Monthly active users were 1.11 billion as of March 31, up 23% year-over-year. Finally, Mobile monthly active users were 751 million as of March 31, up 54% year-over-year.

    Here’s the release in its entirety:

    MENLO PARK, Calif., May 1, 2013 /PRNewswire/ — Facebook, Inc. (NASDAQ: FB) today reported financial results for the first quarter, which ended March 31, 2013.

    “We’ve made a lot of progress in the first few months of the year,” said Mark Zuckerberg, Facebook founder and CEO. “We have seen strong growth and engagement across our community and launched several exciting products.”

     

     

    First Quarter 2013 Financial Summary

     
    In millions, except percentages and per share amounts Q1’12 Q1’13
    Revenue $ 1,058 $ 1,458
    Income from Operations
        GAAP $ 381 $ 373
        Non-GAAP $ 485 $ 563
    Operating Margin
        GAAP 36% 26%
        Non-GAAP 46% 39%
    Net Income
        GAAP $ 205 $ 219
        Non-GAAP $ 287 $ 312
    Diluted Earnings per Share (EPS)
        GAAP $ 0.09 $ 0.09
        Non-GAAP $ 0.12 $ 0.12

     

    First Quarter 2013 Operational Highlights

     

    • Daily active users (DAUs) were 665 million on average for March 2013, an increase of 26% year-over-year.
    • Monthly active users (MAUs) were 1.11 billion as of March 31, 2013, an increase of 23% year-over-year.
    • Mobile MAUs were 751 million as of March 31, 2013, an increase of 54% year-over-year.

     

    Recent Business Highlights

     

    • Launched Facebook Home, a mobile experience for Android that puts people before apps and makes the phone a more social experience.
    • Instagram reached 100 million monthly active users in the first quarter of 2013.
    • Launched new advertising products such as Lookalike Audiences, Managed Custom Audiences, and Partner Categories, which help marketers improve their targeting capabilities on Facebook.
    • Continue to invest in our ad serving and measurement platforms:
      • Partnered with Datalogix, Epsilon, Acxiom, and BlueKai to enable marketers to incorporate off-Facebook purchasing data in order to deliver more relevant ads to users.
      • Enhanced ability to measure advertiser ROI on digital media across the internet through our acquisition of the Atlas Advertising Suite.
    • Appointed Susan D. Desmond-Hellmann, M.D., M.P.H., chancellor of the University of California, San Francisco (UCSF), to the company’s board of directors.

    First Quarter 2013 Financial Highlights

     

    Revenue — Revenue for the first quarter totaled $1.46 billion, an increase of 38%, compared with $1.06 billion in the first quarter of 2012.

    • Revenue from advertising was $1.25 billion, representing 85% of total revenue and a 43% increase from the same quarter last year.
    • Mobile advertising revenue represented approximately 30% of advertising revenue for the first quarter of 2013.
    • Payments and other fees revenue was $213 million for the first quarter of 2013.

    Costs and expenses — First quarter GAAP costs and expenses were $1.08 billion, an increase of 60% from the first quarter of 2012, driven primarily by infrastructure expense and increased headcount.  Non-GAAP costs and expenses were $895 million in the first quarter, up 56% compared to $573 million for the first quarter of 2012.

    Income from operations — For the first quarter, GAAP income from operations was $373 million, down 2% from $381 million in the first quarter of 2012. Excluding share-based compensation and related payroll tax expenses, non-GAAP income from operations for the first quarter was $563 million, up 16% compared to $485 million for the first quarter of 2012.

    Operating margin — GAAP operating margin was 26% for the first quarter of 2013, compared to 36% in the first quarter of 2012. Excluding share-based compensation and related payroll tax expenses, non-GAAP operating margin was 39% for the first quarter of 2013, compared to 46% for the first quarter of 2012.

     

    Provision for income taxes — GAAP income tax expense for the first quarter of 2013 was $134 million, representing a 38% effective tax rate. Excluding share-based compensation expense and related payroll tax expenses, the non-GAAP effective tax rate would have been approximately 43%.

    Net income and EPS — For the first quarter, GAAP net income was $219 million, up 7% compared to net income of $205 million for the first quarter of 2012. Excluding share-based compensation and related payroll tax expenses and income tax adjustments, non-GAAP net income for the first quarter of 2013 was $312 million, up 9% compared to $287 million for the first quarter of 2012.  GAAP diluted EPS was $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 2013 was $0.12, essentially flat compared to the first quarter of 2012.

    Capital expenditures — Capital expenditures for the quarter were $327 million, a 28% decrease from the first quarter of 2012. Additionally, $11 million of equipment was procured or financed through capital leases during the first quarter of 2013.

    Cash and marketable securities — Cash and marketable securities were $9.5 billion at the end of the first quarter of 2013.

     

     

    Webcast and Conference Call Information

    Facebook will host a conference call to discuss the results at 2 p.m. PT / 5 p.m. ET today. The live webcast can be accessed at the Facebook Investor Relations website at investor.fb.com, along with the company’s earnings press release, financial tables and slide presentation.

    Following the call, a replay will be available at the same website. A telephonic replay will be available for one week following the conference call at + 1 (404) 537-3406 or + 1 (855) 859-2056, conference ID 29615930.

     

     

    About Facebook

     

    Founded in 2004, Facebook’s mission is to give people the power to share and make the world more open and connected. People useFacebook to stay connected with friends and family, to discover what’s going on in the world, and to share and express what matters to them.

    Contacts

     

    Investors:
    Deborah Crawford
    [email protected] / investor.fb.com

    Press:
    Ashley Zandy
    [email protected] / newsroom.fb.com

     

    Forward Looking Statements

    This press release contains forward-looking statements regarding our business strategy and plans, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are only predictions and may differ materially from actual results due to a variety of factors including: our ability to retain or increase users and engagement levels, particularly mobile engagement; our ability to monetize our mobile products; risks associated with new product development and introduction; our ability to expand the Facebook Platform; competition; privacy concerns; security breaches; and our ability to manage growth and geographically-dispersed operations. These and other potential risks and uncertainties that could cause actual results to differ from the results predicted are more fully detailed under the caption “Risk Factors” in our Annual Report on Form 10-K filed with the SEC on February 1, 2013, which is available on our Investor Relations website at investor.fb.com and on the SEC website atwww.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2013. In addition, please note that the date of this press release is May 1, 2013, and any forward-looking statements contained herein are based on assumptions that we believe to be reasonable as of this date. We undertake no obligation to update these statements as a result of new information or future events.

    Non-GAAP Financial Measures

    To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: total revenue and advertising revenue excluding foreign exchange effect, non-GAAP costs and expenses, non-GAAP income from operations; non-GAAP net income; non-GAAP diluted shares; non-GAAP diluted earnings per share; non-GAAP operating margin; and non-GAAP effective tax rate. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, many of the adjustments to our GAAP financial measures reflect the exclusion of items, specifically share-based compensation expense and payroll tax related to share-based compensation expense and the related income tax effects, that are recurring and will be reflected in our financial results for the foreseeable future. In addition, these measures may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP amounts excluded from these non-GAAP financial measures.

    We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management in operating our business.

    We exclude the following items from one or more of our non-GAAP financial measures:

    Share-based compensation expense. We exclude share-based compensation expense because we believe that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding operational performance. In particular, because of varying available valuation methodologies, subjective assumptions and the variety of award types that companies can use under FASB ASC Topic 718, we believe that providing non-GAAP financial measures that exclude this expense allow investors the ability to make more meaningful comparisons between our operating results and those of other companies. Accordingly, we believe that excluding this expense provides investors and management with greater visibility to the underlying performance of our business operations, facilitates comparison of our results with other periods, and may also facilitate comparison with the results of other companies in our industry.

    Payroll tax expense related to share-based compensation. We exclude payroll tax expense related to share-based compensation expense because, without excluding these tax expenses, investors would not see the full effect that excluding share-based compensation expense had on our operating results. These expenses are tied to the exercise or vesting of underlying equity awards and the price of our common stock at the time of vesting or exercise, which factors may vary from period to period independent of the operating performance of our business. Similar to share-based compensation expense, we believe that excluding this payroll tax expense provides investors and management with greater visibility to the underlying performance of our business operations and facilitates comparison with other periods as well as the results of other companies.

    Income tax effect of share-based compensation and related payroll tax expenses. We believe excluding the income tax effect of non-GAAP adjustments assists investors and management in understanding the tax provision related to those adjustments and provides useful supplemental information regarding the underlying performance of our business operations.

    Assumed preferred stock conversion. As a result of our initial public offering in May 2012, all outstanding shares of preferred stock were automatically converted into shares of Class B common stock. Consequently, non-GAAP diluted shares and earnings per share for the three months ended March 31, 2012 have been calculated assuming this conversion, which we believe facilitates comparison with prior periods.

    Dilutive equity awards excluded from GAAP. In our calculation of non-GAAP weighted average shares used to compute earnings per share attributable to Class A and Class B common stockholders, we include unvested RSUs for the three months ended March 31, 2012, the number of which is substantial due to the terms of RSUs granted prior to 2011. We believe including these awards facilitates comparison between periods.

    Foreign exchange effect on revenue. We translate current quarter revenue using prior year exchange rates, which we believe is a useful metric that facilitates comparison to our historical performance.

    For more information on our non-GAAP financial measures and a reconciliation of such measures to the nearest GAAP measure, please see the “Reconciliation of Non-GAAP Results to Nearest GAAP Measures” table in this press release.

    FACEBOOK, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (In millions, except for per share amounts)
    (Unaudited)
    Three Months Ended
    March 31,
    2012 2013
     Revenue  $    1,058 $    1,458
     Costs and expenses: 
    Cost of revenue 277 413
    Research and development 153 293
    Marketing and sales 143 203
    General and administrative 104 176
    Total costs and expenses 677 1,085
     Income from operations  381 373
     Interest and other income (expense), net:
    Interest expense (13) (15)
    Other income (expense), net 14 (5)
     Income before provision for income taxes 382 353
     Provision for income taxes 177 134
     Net income  $       205 $       219
     Less: Net income attributable to participating securities 68 2
     Net income attributable to Class A and Class B common stockholders  $       137 $       217
     Earnings per share attributable to Class A and Class B 
     common stockholders: 
    Basic $      0.10 $      0.09
    Diluted $      0.09 $      0.09
    Weighted-average shares used to compute earnings per share 
    attributable to Class A and Class B common stockholders:
    Basic 1,347 2,386
    Diluted 1,527 2,499
     Share-based compensation expense included in costs & expenses: 
    Cost of revenue $          5 $          8
    Research and development 60 117
    Marketing and sales 19 24
    General and administrative 19 21
    Total share-based compensation expense $       103 $       170
     Payroll tax expenses related to share-based compensation included in costs & expenses: 
    Cost of revenue $         – $          1
    Research and development 1 11
    Marketing and sales – 4
    General and administrative – 4
    Total payroll tax expenses related to share-based compensation $          1 $         20

     

    FACEBOOK, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In millions)
    (Unaudited)
    December 31, March 31,
    2012 2013
    Assets
    Current assets:
    Cash and cash equivalents $             2,384 $             2,325
    Marketable securities 7,242 7,147
    Accounts receivable 719 659
    Income tax refundable 451  

    426
    Prepaid expenses and other current assets 471 485
    Total current assets 11,267 11,042
    Property and equipment, net 2,391 2,533
    Goodwill and intangible assets, net 1,388 1,501
    Other assets 57 87
    Total assets $           15,103 $           15,163
    Liabilities and stockholders’ equity
    Current liabilities:
    Accounts payable $                 65 $                 75
    Platform partners payable 169 190
    Accrued expenses and other current liabilities 423 430
    Deferred revenue and deposits 30 30
    Current portion of capital lease obligations 365 338
    Total current liabilities 1,052 1,063
    Capital lease obligations, less current portion 491 420
    Long-term debt 1,500 1,500
    Other liabilities 305 356
    Total liabilities 3,348 3,339
    Stockholders’ equity
    Common stock and additional paid-in capital 10,094 9,961
    Accumulated other comprehensive income (loss) 2 (15)
    Retained earnings 1,659 1,878
    Total stockholders’ equity 11,755 11,824
    Total liabilities and stockholders’ equity $           15,103 $           15,163
    FACEBOOK, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In millions)
    (Unaudited)
    Three Months Ended
    March 31,
    2012 2013
    Cash flows from operating activities
    Net income $       205 $       219
    Adjustments to reconcile net income to net cash provided by operating activities:
    Depreciation and amortization 110 241
    Loss on write-off of equipment 1 9
    Share-based compensation 103 170
    Deferred income taxes (24) (7)
    Tax benefit from share-based award activity 54 59
    Excess tax benefit from share-based award activity (54) (62)
    Changes in assets and liabilities:
    Accounts receivable 65 54
    Prepaid expenses and other current assets (33) (1)
    Other assets (6) (36)
    Accounts payable (3) 1
    Platform partners payable 7 21
    Accrued expenses and other current liabilities 2 (33)
    Deferred revenue and deposits 3 –
    Other liabilities 11 84
    Net cash provided by operating activities 441 719
    Cash flows from investing activities
    Purchases of property and equipment (453) (327)
    Purchases of marketable securities (876) (1,508)
    Sales of marketable securities 69 699
    Maturities of marketable securities 567 903
    Investments in non-marketable equity securities (1) –
    Acquisitions of businesses, net of cash acquired, and purchases of intangible assets (25) (99)
    Changes in restricted cash and deposits (1) 6
    Net cash used in investing activities (720) (326)
    Cash flows from financing activities
    Taxes paid related to net share settlement of equity awards – (405)
    Proceeds from exercise of stock options 5 8
    Proceeds from sale and lease-back transactions 62 –
    Principal payments on capital lease obligations (71) (109)
    Excess tax benefit from share-based award activity 54 62
    Net cash provided by (used in) financing activities 50 (444)
    Effect of exchange rate changes on cash and cash equivalents (1) (8)
    Net decrease in cash and cash equivalents (230) (59)
    Cash and cash equivalents at beginning of period 1,512 2,384
    Cash and cash equivalents at end of period $    1,282 $    2,325
    Supplemental cash flow data
    Cash paid during the period for:
    Interest $          9 $         12
    Income taxes $       174 $          9
    Non-cash investing and financing activities:
    Net change in accounts payable and accrued expenses and other current liabilities related to property and equipment additions $       110 $         47
    Property and equipment acquired under capital leases $         38 $         11
    Fair value of shares issued related to acquisitions of businesses and other assets $          6 $         33
    Reconciliation of Non-GAAP Results to Nearest GAAP Measures
    (In millions, except for number of shares)
    (Unaudited)
    Three Months Ended
    March 31,
    2012 2013
    GAAP revenue $    1,058 $    1,458
    Foreign exchange effect on 2013 revenue using 2012 rates 4
    Revenue excluding foreign exchange effect $    1,462
    GAAP revenue year-over-year change % 38%
    Revenue excluding foreign exchange effect year-over-year change % 38%
    GAAP advertising revenue $       872 $    1,245
    Foreign exchange effect on 2013 advertising revenue using 2012 rates 3
    Advertising revenue excluding foreign exchange effect $    1,248
    GAAP advertising revenue year-over-year change % 43%
    Advertising revenue excluding foreign exchange effect year-over-year change % 43%
    GAAP costs and expenses $       677 $    1,085
    Share-based compensation expense (103) (170)
    Payroll tax expenses related to share-based compensation (1) (20)
    Non-GAAP costs and expenses $       573 $       895
    GAAP income from operations $       381 $       373
    Share-based compensation expense 103 170
    Payroll tax expenses related to share-based compensation 1 20
    Non-GAAP income from operations $       485 $       563
    GAAP net income $       205 $       219
    Share-based compensation expense 103 170
    Payroll tax expenses related to share-based compensation 1 20
    Income tax adjustments (22) (97)
    Non-GAAP net income $       287 $       312
    GAAP diluted shares 1,527 2,499
    Assumed preferred stock conversion 546 –
    Dilutive equity awards excluded from GAAP1 233 –
    Non-GAAP diluted shares 2,306 2,499
    GAAP diluted earnings per share $      0.09 $      0.09
    Net income attributable to participating securities 0.04 –
    Non-GAAP adjustments to net income 0.05 0.03
    Non-GAAP adjustments to diluted shares (0.06) –
    Non-GAAP diluted earnings per share $      0.12 $      0.12
    GAAP operating margin 36% 26%
    Share-based compensation expense 10% 12%
    Payroll tax expenses related to share-based compensation 0% 1%
    Non-GAAP operating margin 46% 39%
    GAAP profit before tax $       382 $       353
    GAAP provision for income taxes 177 134
    GAAP effective tax rate 46% 38%
    GAAP profit before tax $       382 $       353
    Share-based compensation and related payroll tax expenses 104 190
    Non-GAAP profit before tax $       486 $       543
    Non-GAAP provision for income taxes 199 231
    Non-GAAP effective tax rate 41% 43%
    1Gives effect to unvested RSUs in periods prior to our IPO for comparability

     

    SOURCE Facebook

  • Zuckerberg’s FWD.us Immigration Reform Group Snags Bill Gates, Sean Parker, and More

    Zuckerberg’s FWD.us Immigration Reform Group Snags Bill Gates, Sean Parker, and More

    Mark Zuckerberg’s immigration-focused political advocacy group is getting the help of a few more tech heavyweights.

    Today, FWD.us announced a couple of new members: Microsoft founder BIll Gates, current Microsoft CEO Steve Ballmer, Microsoft EVP Brad Smith and Sean Parker, of Napster and later, Facebook fame.

    “We’re thrilled that Bill Gates, Brad Smith, Steve Ballmer, and Sean Parker – longtime advocates for vital policies like comprehensive immigration reform that will grow our economy – are joining FWD.us’ efforts to organize and engage the tech community,” said FWD.us President Joe Green. “We’ve been excited by the momentum we continue to see as more members of the tech community contribute to the national debate to improve our economic future, and support the bipartisan policies that will boost economic growth and continue to grow the knowledge economy.”

    FWD.us officially launched on April 11th when group founder Mark Zuckerberg penned an op-ed in the Washington Post, giving a basic outline of what the group hopes to accomplish through immigration reform.

    Officially, FWD.us is “a new organization founded by leaders of our nation’s technology community to focus on these issues and advocate a bipartisan policy agenda to build the knowledge economy the United States needs to ensure more jobs, innovation and investment.”

    The group already had some major tech clout – Netflix CEO Reed Hastings, former Groupon CEO Andrew Mason, Yahoo CEO Marissa Mayer, SpaceX’s Elon Musk, Google Chairman Eric Schmidt, and Instagram’s Kevin Systrom. But adding Gates, Ballmer, and Parker is a significant boost for the group.

    Zuckerberg has called for comprehensive immigration reform that starts with effective border security and also allows a “path to citizenship.” He also calls for higher standards in schools and “investment in breakthrough discoveries in scientific research and assurance that the benefits of the inventions belong to the public and not just to the few.”

    FWD.us currently has two U.S. offices, one in Silicon Valley and one in Washington D.C. The goal, obviously, is to affect legislation. Having the names that it has attached to it – well, it’s a good start.

    [via All Things D]

  • Child Pornographer’s Sentence Overturned After Judge Goes On Strange, Irrelevant Rant About Facebook, Zuckerberg

    Child Pornographer’s Sentence Overturned After Judge Goes On Strange, Irrelevant Rant About Facebook, Zuckerberg

    An 8-year prison sentence for a convicted child pornographer has been vacated and remanded for resentencing following a procedural error that involved the judge in the case going off on a completely unnecessary rant about Facebook and Mark Zuckerberg. The case is even odder when you understand that the crimes in question had absolutely nothing to do with Facebook.

    56-year-old Laura Culver was sentenced on January 30th to 96 months in jail for producing child pornography. Back in 2001 and 2002, Culver collaborated with a man named Edgardo Sensi to film an 8-year-old girl engaged in various sexual acts. Pretty disgusting stuff. So, an 8-year prison sentence is not unreasonable, right?

    Well no, but in this specific case the sentence is being thrown out. An appeals court has ruled that the judge’s actions during sentencing demand that the sentence be vacated and reworked.

    While explaining Culver’s sentence, U.S. District Judge Warren W. Eginton reportedly went on some sort of unrelated Facebook-bashing tangent where he ended up blaming Facebook CEO Mark Zuckerberg for “hurting a lot of people.”

    The records are sealed, but the appeals court, in its decision, paints a pretty clear picture of what the judge was ranting about.

    In justifying its decision to impose a sentence of eight years instead of six, the district court referenced “Facebook, and things like it, and society has changed.” … The court speculated that the proliferation of Facebook would facilitate an increase in child pornography cases. The court said it hoped Mark Zuckerberg (who founded Facebook) was “enjoying all his money because…he’s going to hurt a lot of people….”

    But Facebook had nothing to do with Culver’s case. In fact, the internet itself didn’t even play a factor in it.

    The government argues that the district court was merely concerned about the extent to which various new technologies may facilitate child pornography, rather than Facebook specifically. In that sense, Facebook was a reference to the internet, using synecdoche. But the government does not explain (because it cannot) the role of new technology in this case. Culver did not use the internet to commit her crime, and it should not have played a predominant role in her sentencing.

    The appeals court makes a point to say that the ruling in no way suggests that the 8-year sentence for Culver’s crimes is “substantively unreasonable.” In fact, it’s actually well under the recommended guidelines for such a crime.

    “Still, that discretion should be exercised without the influence of procedural error.”

    What a truly terrible, and odd case.

    [via Techdirt]

  • Facebook Home Gets a Couple of New Ads

    Facebook Home Gets a Couple of New Ads

    Facebook Home, the company’s new OS-lite “app family” that takes over your Android device and turns the homescreen into a Facebook news feed, launched this past Friday. Now you can download the app collection from Google Play, free, on a select number of Android devices.

    When Facebook first announced Home, they launched a quirky little ad featuring some plane antics. Now, Facebook has unveiled the second Facebook Home ad in this style, made by the people at Wieden+Kennedy. This ad is called “Dinner”:

    Facebook also put out this semi-ad called “Launch Day.” It stars Zuckerberg, whose pep talk is flooded with events from on engineer’s news feed. Both of these ads stick with the Facebook Home brings your Facebook life everywhere theme. Check it out:

  • Zuckerberg: U.S. Immigration Policy ‘Unfit for Today’s World’

    Zuckerberg: U.S. Immigration Policy ‘Unfit for Today’s World’

    Facebook CEO Mark Zuckerberg has pulled the cover off his immigration reform group, outlining its position and naming its advocates in a Washington Post op-ed.

    He starts off with an anecdote about a young, undocumented student that he teaches in an after-school class on entrepreneurship. The kid’s family is from Mexico, but he’s live in America basically his whole life. Zuckerberg recalls how the student relating his worries about being able to go to college, given his situation.

    “These students are smart and hardworking, and they should be part of our future,” says Zuckerberg.

    And with that, Zuckerberg announced FWD.us.

    “I am proud to announce FWD.us, a new organization founded by leaders of our nation’s technology community to focus on these issues and advocate a bipartisan policy agenda to build the knowledge economy the United States needs to ensure more jobs, innovation and investment.”

    And here some of those tech leaders that have joined Zuckerberg on the project:

    Reid Hoffman, Eric Schmidt, Marissa Mayer, Drew Houston, Ron Conway, Chamath Palihapitiya, Joe Green, Jim Breyer, Matt Cohler, John Doerr, Paul Graham, Mary Meeker, Max Levchin, Aditya Agarwal and Ruchi Sanghvi.

    “Today’s students should have the same opportunities – but our current system blocks them. We have a strange immigration policy for a nation of immigrants. And it’s a policy unfit for today’s world,” says Zuckerberg.

    Zuckerberg gives a basic outline of FWD.us’ agenda. He says that comprehensive immigration reform starts with effective border security and also allows a “path to citizenship” that lets America benefit from its best and brightest. He also calls for higher standards in schools and “investment in breakthrough discoveries in scientific research and assurance that the benefits of the inventions belong to the public and not just to the few.”

    Not too specific on the goals thus far, but the message is clear: we have to start keeping the talent here, instead of letting it slip away to other countries.

    Zuckerberg says that the group will “work with members of Congress from both parties, the administration and state and local officials. We will use online and offline advocacy tools to build support for policy changes, and we will strongly support those willing to take the tough stands necessary to promote these policies in Washington.”

    You can visit FWD.us, today, and connect via Facebook (surpirse, surprise). FWD.us’ landing page asks visitors to “join the tech community in passing immigration reform.”

  • Facebook Home Will ‘Hopefully’ Get Graph Search, Says Zuckerberg

    Facebook Home Will ‘Hopefully’ Get Graph Search, Says Zuckerberg

    It may be quite a while before we see it, but we can probably expect Facebook Home to get Graph Search built in sometime in the future.

    First, if you haven’t read about Facebook Home yet, go do that.

    Graph Search has not even been launched on mobile devices yet, and it remains to be seen how long that will take. You can rest assured, however, that it will come. Facebook said as much when that was introduced. Danny Sullivan at Search Engine Land quotes Zuckerberg today:

    “When that’s available, hopefully we’ll be able to make that available here [in Home]. But even Graph Search, Graph Search is not web search. People still need Google or Bing of whatever they use for web search.”

    Is Zuckerberg perhaps being cagey, holding back on a secret-uber plan to eventually have Graph Search take over on these devices. Perhaps. And I do think Graph Search is going to come. But really, the impression I got was that search has largely been overlooked with the launch of Home.

    In his article, which points out that Facebook Home makes it harder to search, Sullivan also shares a Vine showing that Facebook Home does not prevent the easy use of Google Now.

    Graph Search is not the only potential feature for Facebook Home that Zuckerberg hinted at today. He also said ads will come at some point.

  • Oh Yeah, And Facebook Home Will Get Ads Too

    Oh Yeah, And Facebook Home Will Get Ads Too

    Facebook, as you’ve probably heard by now, introduced Facebook Home today at a press event. This is essentially Facebook’s way of taking over your Android device. You can learn more about it here.

    The main feature of the offering is called the Cover Feed. This sufaces the latest photos and updates from your News Feed on your homescreen, and lets you navigate through them by swiping.

    Facebook didn’t show off any ads when they were demonstrating the product, but at the event, CEO Mark Zuckerberg did indicate that ads will be a part of it eventually. He is quoted as saying, “There are no ads in this yet. I’m sure at some point there will be.”

    Here’s an ad for Facebook Home itself. And for more on the new HTC First phone, which comes with Facebook Home pre-installed, read this.

    Last week, Facebook announced real-time cookie-based Facebook Exchange ads in the news feed.

  • This May Or May Not Be Mark Zuckerberg’s Old Angelfire Site (But It’s Funny Either Way)

    This May Or May Not Be Mark Zuckerberg’s Old Angelfire Site (But It’s Funny Either Way)

    The authenticity of this doesn’t appear to have been confirmed by anyone so far, but a link to an old school Angelfire site was posted at Hacker News (via Gizmodo), and it was allegedly created by Facebook CEO Mark Zuckerberg when he was a kid.

    Again, it’s unconfirmed, and could be a fake, but either way, it’s pretty funny.

    The site has links for: Java Drawing Tool, The Web, GPA, The Vader Fader, Pong Game, Magnetic Poetry, Molecule Viewer, The Best…, About Me, Cow-a-Bungee, Monkey Theory and Base Converter. It links to the email address: [email protected].

    The about page says:

    Hi, my name is…Slim Shady. No, really, my name is Slim Shady. Just kidding, my name is Mark (for those of you that don’t know me) and I live in a small town near the massive city of New York. I am currently 15 years old and I just finished freshman year in high school. I have remodeled this website in an attempt that perhaps some search engine will recognize it. I am trying to promote my new AOL Program, The Vader Fader, which you can download elsewhere on this site. It is a decent fader. If you have any comments about this website, the java applets on it, or the Vader Fader which I am trying to promote, please contact me. My E-Mail address is at the bottom of this page.

    Zuckerberg’s hometown (as listed on his real Facebook Timeline) is Dobbs Ferry, New York. Born in 1984, he would have indeed been fifteen when Eminem’s “My Name Is” came out in 1999.

    Here’s his description of the Vader Fader:

    This is a fader that I made when I was a little bored and somewhat inspired on a long weekend in between finals. I am not sure what versions of AOL it works with but it has worked for myself and for all of my friends who have AOL 4.0. I am not sure if it works with AOL 3.0 though. This fader is a small download and it features a great AOL-Style Interface with many options. Its options are mainly limited to fading but the program can manipulate AOL in such a way that it can fade Chat Text, Instant Messages, and E-Mails. I first saw a chat fader and I thought that it was cool. However, it is very rare that one can find a program that fades Instant Messages as well. It is veritably impossible to find a program that fades E-Mails. So take advantage of this fader and tell your friends to download it as well!

    Of his “The Web” app, he says:

    As of now, the web is pretty small. Hopefully, it will grow into a larger web. This is one of the few applets that require your participation to work well. If your name is already on The Web because someone else has chosen to be linked to you, then you may choose two additional people to be linked with. Otherwise, if you see someone who you know and would like to be linked with but your name is not already on The Web, then you can contact me and I will link that person to you and put you on The Web. If you do not know anyone on The Web, contact me anyway and I will put you on it. In order for this applet to work, you must E-Mail me your name and the names of the two people that you would like to be linked with. Thank you!

    Sounds like something a 15-year-old Mark Zuckerberg might create. Hopefully Aaron Sorkin’s already planning the prequel.

    According to this version of Zuckerberg, the saying of the year at the time was “Suck it!”

    You can check out the site here.

    We’ve reached out to Zuck for comment, and will update if we hear back (which we almost certainly won’t).

    Image: Zuckerberg launching “The Wall” in 2004

  • Zuckerberg Leads Push to Form New Super PAC [REPORT]

    Zuckerberg Leads Push to Form New Super PAC [REPORT]

    Some Silicon Valley leaders, led by Facebook CEO Mark Zuckerberg, are looking to form their own SuperPAC to tackle a variety of issues in Washington.

    According to sources quotes by the San Francisco Chronicle, Zuckerberg has already pledged as much as $20 million into the new group – and has already gotten others to pledge a few million dollars of their own.

    The group looks to be leaning heavy to the right (at least in its initial leadership), according to the reports. The group will include a well-known Republican strategist, Jon Lerner, who is tied to Grover Norquist (of the no tax pledge) as well as Rob Jesmer, who previously worked with Republican Senator John Cornyn. Apparently, the whole thing was set into motion by Zuckerberg’s old Harvard roommate Joe Green (co-founder of Causes and NationBuilder).

    As you may remember, Zuckerberg was among 100 tech presidents, CEOs, and chairmen who penned a letter to President Obama and Congressional leadership earlier this month asking for them to move on comprehensive immigration reform. They argued that immigrant entrepreneurs have founded thousands of companies, and that our outdated system is forcing out highly-skilled, great minds. Basically, better immigration policy is good for business.

    The letter was also signed by Google Chairman Eric Schmidt, HP CEO Meg Whitman, and Yahoo CEO Marissa Mayer.

    This new SuperPAC won’t be an immigration-minded entity, however. Sources say that the group’s focus will be “more far-ranging and deal with an agenda of topics related to economic growth and vitality.”

    Zuckerberg, who up until recently had not made huge waves in the political arena, hosted a big fundraiser for Republican Governor of New Jersey Chris Christie as his Palo Alto home.

  • Mark Zuckerberg, Marissa Mayer, and Other Tech Leaders Push for Immigration Reform

    Mark Zuckerberg, Marissa Mayer, and Other Tech Leaders Push for Immigration Reform

    Tech leaders have crafted a joint letter to President Obama and the nation’s top lawmakers, asking that Washington work together to craft some sort of comprehensive immigration reform by the end of this year.

    The letter was signed by over 100 Presidents, CEOs, partners, and chairmen of both major and minor tech companies. Some of the notable names include Facebook CEO Mark Zuckerberg, Google Chairman Eric Schmidt, HP CEO Meg Whitman, and Yahoo CEO Marissa Mayer.

    It was addressed to President Obama, Speaker of the House John Boehner, House Minority Leader Nancy Pelosi, Senate Majority Leader Harry Reid and Senate Minority Leader Mitch McConnell.

    Here’s a bit from the letter:

    As you know, the United States has a long history of welcoming talented, hard-working people to ourshores. Immigrant entrepreneurs have gone on to found thousands of companies with household nameslike eBay, Google, PayPal and Yahoo! to name just a few. These companies provide jobs, drive economicgrowth and generate tax revenue at all levels of government.

    Yet because our current immigration system is outdated and inefficient, many high-skilled immigrantswho want to stay in America are forced to leave because they are unable to obtain permanent visas. Somedo not bother to come in the first place. This is often due to visa shortages, long waits for green cards,and lack of mobility. We believe that numerical levels and categories for high-skilled nonimmigrant andimmigrant visas should be responsive to market needs and, where appropriate, include mechanisms tofluctuate based on objective standards. In addition, spouses and children should not be counted againstthe cap of high-skilled immigrant visas. There should not be a marriage or family penalty.

    They go on to say that bipartisan legislation like the Immigration Innovation Act of 2013 and the Startup Visa Act and startup Act 3.0 are good steps to “encouraging innovation here in the U.S. by allowing American companies to have access to the talented workers they need while simultaneously investing in STEM education here in the U.S.”

    Tech companies have a history of lobbying congress to free up green cards and temporary worker visa for high-skilled workers. This new push is a continuation of that message – that we need to keep the best and brightest inside our borders.

    Tech CEO letter by JMartinezTheHill

    [via The Hill]

  • Mark Zuckerberg Takes Top Spot in Annual CEO Confidence Survey

    Mark Zuckerberg Takes Top Spot in Annual CEO Confidence Survey

    Congratulations, Mark Zuckerberg. Your employees at Facebook approve of the way you’re running the company at a higher rate than employees at any other company in the country.

    Glassdoor has just put out their annual Highest Rated CEOs list, and Facebook CEO Mark Zuckerberg tops it with a 99% approval rating.

    Glassdoor’s annual list comes from voluntary survey participation from employees of each company that visit the site. According to Glassdoor, no CEO could even make the list unless they had at least 100 ratings over the past year. Apparently, Glassdoor logged over 500,000 different ratings from employees in 2012.

    The survey is simple – just one question: “Do you approve or disapprove of the way your CEO is leading the company?”

    Rounding out the top five are Bill McDermott & Jim Hagemann Snabe of SAP, who also garnered a 99% approval rating. Next is Dominic Barton of McKinsey & Company (97%), followed by Jim Turley of Ernst & Young (96%) and John Schlifske of Northwestern Mutual (96%).

    Other notable names from tech that made the list include Google’s Larry Page, who came in 11th with a 95% approval rating. Amazon’s Jeff Bezos took 16th with a 93% rating and Dell’s Michael Dell came in 49th with an 81% rating.

    Last year’s winner, Apple CEO Tim Cook, fell to #18. Last year, he had a 97% approval rating, compared to this year’s 93%.