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

Launch marketing council Episode 5: Retailer and supplier

In our fifth and final episode, we delve into the relationship between retailer and supplier and how it drives and influences launch marketing strategies and success. To do that, we’re joined by Campbell Davies, group general manager of Associated Retailers Limited, and Kristin Viccars, marketing director A/NZ, Apex Tool Group. Also featured are Five by Five Global managing director, Matt Lawton, and CMO’s Nadia Cameron.

More Videos

Thanks for nice information regarding Account-based Marketing. PRO IT MELBOURNE is best SEO Agency in Melbourne have a team of profession...

PRO IT MELBOURNE

Cultivating engaging content in Account-based Marketing (ABM)

Read more

The best part: optimizing your site for SEO enables you to generate high traffic, and hence free B2B lead generation. This is done throug...

Sergiu Alexei

The top 6 content challenges facing B2B firms

Read more

Nowadays, when everything is being done online, it is good to know that someone is trying to make an improvement. As a company, you are o...

Marcus

10 lessons Telstra has learnt through its T22 transformation

Read more

Check out tiny twig for comfy and soft organic baby clothes.

Morgan mendoza

Binge and The Iconic launch Inactivewear clothing line

Read more

NetSuite started out as a cloud-based provider of Enterprise Resource Planning software or as NetSuite solution provider, which companies...

talalyousaf

NetSuite to acquire Bronto's digital marketing platform for US$200m

Read more

Blog Posts

Getting privacy right in a first-party data world

With continued advances in marketing technology, data privacy continues to play catchup in terms of regulation, safety and use. The laws that do exist are open to interpretation and potential misuse and that has led to consumer mistrust and increasing calls for a stronger regulatory framework to protect personal information.

Furqan Wasif

Head of biddable media, Tug

​Beyond greenwashing: Why brands need to get their house in order first

Environmental, Social and (Corporate) Governance is a hot topic for brands right now. But before you start thinking about doing good, Craig Flanders says you best sort out the basics.

Craig Flanders

CEO, Spinach

​The value of collaboration: how to keep it together

Through the ages, from the fields to the factories to the office towers and now to our kitchen tables, collaboration has played a pivotal role in how we live and work. Together. We find partners, live as families, socialise in groups and work as teams. Ultimately, we rely on these collaborative structures to survive and thrive.

Rich Curtis

CEO, FutureBrand A/NZ

Sign in