The social networking giant Facebook Inc (NASDAQ:FB) is all set to release its second quarterly results today, and most of the analysts are optimistic that the numbers will be attractive this time again. CNBC discussed with Oppenheimer & Co.’s Jason Helfstein about the firm’s estimate of the company’s earnings and he said that it should come strong.
Oppenheimer & Co is targeting for a 57% in revenue growth, higher than the market consensus of 55%. The usage of Facebook in the U.S. is up by 42%, same as 43% in the first quarter. Moreover, Helfstein said that the budget spent on Facebook Inc (NASDAQ:FB) is growing 5-10% quarter-to-quarter on a same client basis alone, therefore if new clients are factored in than the revenue per hour for Facebook could go up by 14%. So, when that is combined with expected growth in other divisions, like Instagram, the company might see an impressive quarter, “We think it’s going to be a strong quarter. Overall usage of Facebook Inc (NASDAQ:FB) was basically in-line with the first quarter,” said Helfstein.
Over the last two years, Facebook Inc (NASDAQ:FB) has actively shifted its focus to mobile, which contributes 60% of its revenue and Helfstein expect mobile to continue to hinge this time as well. He said that mobile growth is up 56-57% in the U.S. as against 60% in the first quarter, but the segment still reflects bulk growth of the company. The company has the same pricing for mobile per user as that of desktop though, unlike other internet companies that price lower for mobile services. Helfstein added:
“They have really done a very good job in bridging data gap between the mobile and desktop. So they learn about you on the desktop and use that data when you go on your mobile phone. It’s a seamless experience for advertisers.”
The uniqueness in its mobile platform has allowed the company to adopt a strong pricing factor, evident from the recent changes where advertisers are required to book for a minimum of a week’s slot. Based on multiple positives of Facebook Inc (NASDAQ:FB), Oppenheimer & Co currently has an ‘Outperform’ rating on the stock, while it has a target price of $79.
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