TMCnet Feature Free eNews Subscription
July 24, 2013

Facebook Sees Jump in Q2 Revenue Thanks to More Mobile Use

By Ed Silverstein, TMCnet Contributor

On Wednesday, Facebook (News - Alert) had some very impressive revenue news for the most recent quarter.



Quarterly revenues jumped 53 percent at the social media giant. Also, mobile ad revenue was about 41 percent of all ad revenue.

Looking at the quarter, in a Wednesday webcast CEO Mark Zuckerberg (News - Alert) said there were “strong” results in Q2, with a “good foundation for the future.”

The positive news led to Facebook shares jumping 20 percent in late trading, reports said.

With 1.15 billion subscribers, Facebook said the number of users was 21 percent more than the same quarter last year. In Q1 of 2013, Facebook had 1.11 billion monthly users.

The company also noted the number of people using Facebook daily – especially in the United States. Average daily active users jumped 27 percent to 699 million in June.

Zuckerberg is also looking forward to connecting the next 5 billion people to Facebook, including those from the non-developed world.


Image via Shutterstock

“There’s nothing magical about a billion,” Zuckerberg, adding that company investments are starting to pay off.

“It was a great quarter across the board,” David Ebersman, Facebook’s CFO, added in the webcast.

The company saw net income of $333 million in Q2. Last year at this time, it was a loss of $157 million.

When not including stock-based compensation, profits were $488 million in the most recent quarter. Revenue jumped 53 percent to $1.81 billion. Analysts were projecting revenues of $1.62 billion, according to Thomson Reuters (News - Alert).

Much of the media’s focus is on the company’s efforts 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," Zuckerberg said in a statement.

Facebook is following other sector trends with more users opting for mobile and tablet devices to connect to social media instead of computers.

Also, the number of subscribers who use mobile versions of Facebook at least once a month edged up 9 percent to 819 million. The number of mobile average daily active users was 469 million in June. 

Also, it is noteworthy that 41 percent of ad revenue was from mobile, compared to 30 percent in Q1, according to Facebook COO Sheryl Sandberg.

Overall, ad revenue in Q2 was $1.6 billion, a 61 percent increase over Q2 of 2012, she added.

“We made some really good progress this quarter,” Zuckerberg concluded. “That’s particularly the case in mobile. More daily actives on mobile than on desktop. More than half a billion people are on mobile every day.”




Edited by Rich Steeves
» More TMCnet Feature Articles
Get stories like this delivered straight to your inbox. [Free eNews Subscription]
SHARE THIS ARTICLE

LATEST TMCNET ARTICLES

» More TMCnet Feature Articles