Facebook asserts its success on mobile with another strong quarter

About 53 per cent of the company's ad sales came from mobile devices

Facebook's financial results from Q4 '12 to Q4 '13
Facebook's financial results from Q4 '12 to Q4 '13

More than half of Facebook's ad sales came from mobile devices in the fourth quarter, showing continued strength in the site's ability to monetize its service on smaller screens.

Total revenue for the quarter ended December 31 was $US2.59 billion, a 63 per cent increase from the same period the previous year, the company reported. Facebook's sales beat analysts' expectations of $US2.33 billion, as polled by Thomson Reuters.

Net income for the social media company was $US523 million, a more than 700 per cent increase from the fourth quarter in 2012. Earnings per share was $US0.20. Excluding share-based compensation expenses and related payroll tax expenses and adjustments, earnings per share was $US0.31, topping analyst expectations of $US0.27.

Facebook generated sales of $US2.34 billion from advertising, a 76 percent increase from the previous year. Of its total ad sales, 53 per cent came from ads placed on mobile devices, the company reported. During the same period in 2012, only 23 per cent of the company's advertising revenue was derived from mobile.

"It was a great end to the year for Facebook," CEO Mark Zuckerberg said in a statement.

Facebook makes the majority of its money from advertising and the company has been pressured to raise its ad revenues specifically on mobile devices as more people migrate away from desktop PCs in favor of devices like smartphones and tablets.

Over the past year, Facebook has made considerable progress in chasing mobile ad dollars. In the previous quarter Facebook said roughly 49 percent of its ad sales came from mobile; Wednesday's results mark the first time the company has crossed the 50 percent mark.

The company has several different products for monetizing on mobile, including mobile app install ads, which direct users out of Facebook and into Apple or Google's app stores.

One potential issue hanging over Facebook's business is the extent to which young people -- teens specifically -- might be growing tired of it. During the company's previous earnings call in October, executives reported that Facebook was seeing a decline in the number of daily users among younger teenagers. The concern is that while younger people may not be leaving Facebook outright in droves, they could prefer rival services like Snapchat or Twitter for certain activities. Such a scenario could weaken Facebook's ability to attract advertisers.

Facebook did not address that issue in its announcement, though it is likely to face questions on the matter later in the day when Zuckerberg and other executives take questions from investors and financial analysts. Facebook could also be asked to clarify which types of ad products specifically on mobile helped to generate the bulk of its revenue there and whether the gains came from more ads, or improved ads.

The company did grow its monthly active users overall by 16 per cent to 1.23 billion. The company also grew its daily active users by 22 per cent, but it did not break them down by age.

For the full year, Facebook's revenue was $US7.87 billion, a 55 per cent increase from its sales in 2012.

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 newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

Invest and earn with Coinbloc .us. Guaranteed Weekly ROI, early signals, fast withdrawals among others. I recommend Coinbloc .us as on...

Hans Jensen

Explainer: What marketers need to know about cryptocurrency

Read more

Investment decisions are a big deal, so why not get some guidance? You can day-trade cryptos, BUY and HOLD and evaluate the assets with f...

Dave Sigurd

Gartner: Digital isn't enough of a superpower for CMOs anymore

Read more

I normally don’t feel comfortable investing online but because the company I worked for downsized due to the pandemic and I was one of th...

Dave Sigurd

CMO's top 8 martech stories for the week - 9 June 2022

Read more

Investment decisions are a big deal, so why not get some guidance? You can day-trade cryptos, BUY and HOLD and evaluate the assets with f...

Dave Sigurd

Creating a marketplace for wellness

Read more

A solution for an retail industry data extraction. https://e-scraper.com/usefu...

"e-Scraper" Data Extracting

​Catchoftheday launches fee-based online shopping club

Read more

Blog Posts

2 hidden ingredients for leadership success CMOs need to know

Your success as a senior marketing professional has much in common with your success as a leader. Both marketing, and leadership activities, depend on building trust, encouraging action, and reliably fulfilling promises that have been made.

Gerard Penna

Leadership advisor, coach

How shifting economic trends are impacting digital media

Between further interest rate rises, inflation​, empty shelves, extortionate lettuce prices, supply chain issues and the barely believable events in Eastern Europe, the past six months there’s been a cacophony of environmental factors.

Kieran Reed

Senior digital manager, Alpha Digital

5 ways to turn imposter syndrome into confidence and conviction

Imposter syndrome. That feeling others will discover you are actually not as good as they expect, and at any point you will be exposed and ridiculed as a fraud. If you can relate to this, then you are not alone.

Rowena Millward

Author, consultant

Sign in