Facebook reports a big sales jump, helped by mobile ads

Revenue was $US2.91 billion for the second quarter, with more than half derived from mobile ads

Facebook's earnings for the past five financial quarters.
Facebook's earnings for the past five financial quarters.

Facebook's quarterly sales rose 61 per cent on the strength of mobile advertising, the company said Wednesday.

Sales for the second quarter, which ended June 30, were $US2.91 billion the company reported, beating financial analysts' estimates of $2.81 billion, as polled by Thomson Reuters.

Revenue from advertising, which makes up the bulk of Facebook's sales, was $US2.68 billion, up 67 per cent from the same period last year. Of that, 62 per cent, or $US1.67 billion, came from ads on mobile devices, a 41 per cent jump from 2013.

Facebook shares were trading at $US72.70 soon after the market close, up from a closing price of $US71.29.

Net income for the quarter was $US791 million, up 138 per cent from $US333 million in the same period last year, Facebook reported. Excluding share-based compensation and other expenses, Facebook's earnings per share was $US0.42, blowing away analyst estimates of $US0.32.

Facebook had a good second quarter, said CEO Mark Zuckerberg, in the company's announcement. "Our community has continued to grow, and we see a lot of opportunity ahead as we connect the rest of the world," the statement said.

Facebook now has 1.32 billion monthly active users, a 14 percent increase from the same period last year.

Facebook's ability to make money on mobile was a concern to investors when the company went public in 2012. Since then, it has assuaged those concerns, reporting for the first time earlier this year that it made more than half its sales on mobile.

Facebook is expected to swallow up roughly 22 percent of the total global mobile ad market this year, according to eMarketer, up from 5 percent in 2012. Google, one of Facebook's largest competitors, is expected to take half the market.

It's still a lingering concern among some analysts whether Facebook can hold the attention of its younger users as fresh sites and apps such as Snapchat and Tumblr have come along. Zuckerberg and other company executives may address those issues when they take questions from analysts during a conference call Wednesday.

They may also give an update on the success of ads in Instagram, which Facebook acquired in 2012. Instagram started running ads last November.

(More to follow.)

Zach Miners covers social networking, search and general technology news for IDG News Service. Follow Zach on Twitter at @zachminers. Zach's e-mail address is zach_miners@idg.com

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Disruption Down Under – What’s Amazon’s real competitive advantage?

Savvy shoppers wait in anticipation, while Australian retailers are gearing up for the onslaught. Amazon’s arrival is imminent.

Change across the board: Why boards need to digitally evolve

Traditionally the non-executive board of a company acts in an advisory capacity - attending monthly board meetings to offer overarching advice and guidance typically focusing on:

Jodie Sangster

CEO, ADMA

The most desirable customers you’ve overlooked

“What will really move the needle?” This is a question that keeps leaders awake at night. And at the intersection of some of their top priorities – finding pockets of growth, redefining the customer experience, and making an emotional impact – lies a latent market: Their diverse customers.

Really inspiring !

Goldenboy Media

Jaywing sets sights on Australian growth with digital and data-driven agency model

Read more

Being aware of regulations or guidlines is just the start. As our CEO Emma Lo Russo stated exactly two weeks ago at an event we supported...

Alan Smith

​Are the Wild West days of influencer collaboration over?

Read more

Rebranding is always nice solution to get better organisation. Businessman may apply certain special services (for example, https://www.l...

David Hill

CMO interview: Spearheading the global rebranding of OFX

Read more

Thank you so much for sharing this article.Top Digital Marketing company in Bangalore

Way To DM

Predictions: 17 digital marketing trends for 2017

Read more

Thanks for the great article Jodie, agree many boards and senior execs are operating in outdated modes, just as we need some reverse soci...

sharyn

Change across the board: Why boards need to digitally evolve - Data-driven marketing - CMO Australia

Read more

Latest Podcast

More podcasts

Sign in