Mobile ads now generate almost 75 percent of Facebook's revenue

Total sales for the first quarter grew by more than 40 percent

Facebook chief Mark Zuckerberg, pictured Dec. 11, 2014, during a public town hall meeting at Facebook's headquarters.
Facebook chief Mark Zuckerberg, pictured Dec. 11, 2014, during a public town hall meeting at Facebook's headquarters.

Facebook continued growing its business with ads placed on small screens last quarter, when it generated 73 percent of its sales from mobile ads.

Facebook's total first-quarter revenue was US$3.54 billion, up more than 40 percent from a year earlier, the company reported Wednesday. That was a bit less than the consensus analyst estimate of $3.56 billion, as polled by Thomson Reuters.

With a trove of personal data on its billion-plus members -- many of whom now log in from their smartphones -- Facebook's mobile ad business has become a powerhouse.

During the quarter, which ended March 31, Facebook grew its mobile ad sales by 59 percent to $2.59 billion. After going public in mid-2012, Facebook faced questions from investors over its ability to grow its business on mobile, but the company eventually dispelled those doubts.

Net income came in at $512 million, down 20 percent, while earnings per share dropped 28 percent to $0.18.

On a pro forma basis, which excludes certain costs, such as share-based compensation and related payroll tax expenses, Facebook had earnings per share of $0.42, up from $0.35 last year, and beating the analyst consensus estimate of $0.40.

"This was a strong start to the year," CEO Mark Zuckerberg said in a statement.

The company's costs and expenses rose by more than 80 percent from a year earlier, to $2.61 billion.

The number of people who log in monthly to Facebook grew by 13 percent, to 1.44 billion. And the number of those people who log in from a mobile device grew faster, by 24 percent to 1.25 billion.

In addition to its primary mobile app, Facebook now operates a suite of apps including Instagram, Messenger and WhatsApp. But its flagship app generates by far the most mobile ad sales.

Facebook began placing ads in Instagram in 2013, but by its own admission has done so slowly and gradually. Neither Messenger nor WhatsApp carry ads yet.

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

Top tips to uncovering consumer insights for business innovation

An in-depth understanding of consumers sits at the heart of what we all need to do, but we know it’s not always easy to uncover insights that will unlock a true innovation opportunity.

Matt Whale

Managing director, How To Impact

Is your customer experience program suffering bright shiny object syndrome?

You may have heard of ‘bright shiny object syndrome’. The term is used to describe new initiatives undertaken by organisations that either lack a strategic approach, or suffer from a failure to effectively implement.

Leveraging technology to stand out in the sea of sameness

The technology I'm talking about here is data and marketing automation. Current digital marketing methodology, much as it is practiced at Bluewolf, dictates the need for a strategy that does four things: Finds the right audience, uses the right channel, delivers the right content, and does all of that at the right time.

Eric Berridge

CEO and co-founder of Bluewolf, an IBM Company

Lead Management is very important part of the process. For anyone running Facebook Lead Ads I would recommend using this service.Get your...

Dirk Lo

How this fintech startup is improving content marketing and lead generation

Read more

I am agreeing with Mr. Tyron Hayes that a measured test-and-learn approach could be missing opportunities to not only better engage custo...

rush essay reviews

CMO interview: How Curtin University’s marketing chief is using test and learn to cope with complexity

Read more

Excellent!

Dr Sadasivan,US

Shakespeare shows data and creativity aren’t Montagues and Capulets

Read more

Great article! Agreed with all... Matthew Lerner, Deeps De Silva... When a company has a great product that solves customers needs, a gre...

James Tyler

Why marketers are embracing growth hacking techniques

Read more

Very good article, Social media analytics helps in problem identification. They can serve as an early warning system for negative custome...

BizVinu

Four ways to use social media to boost customer loyalty

Read more

Latest Podcast

More podcasts

Sign in