Facebook sales leap, amid a growing mobile ad business

Mobile ad sales comprised nearly 60 percent of the company's total ad sales

Facebook earnings for the past five financial quarters
Facebook earnings for the past five financial quarters

Facebook reported a nice 72 percent boost in sales for the first quarter, as the company continues to make strides expanding its advertising business on mobile devices.

Total revenue for the period ended March 31 was US$2.5 billion, Facebook reported Wednesday, beating analysts' estimates of $2.36 billion, as polled by Thomson Reuters.

Net income was $642 million, nearly tripling the $219 million in profit reported for the same quarter in 2013. Earnings per share for 2014's first quarter were $0.25, up from $0.09 in the year-ago period. Excluding share-based compensation expenses and related adjustments, Facebook's earnings per share were $0.34, soaring past analysts' expectations of $0.24.

Facebook makes the bulk of its revenue from advertising -- $2.27 billion for the quarter, up 82 percent from last year, the company said. Mobile advertising constituted about 59 percent of that total.

Facebook's stock was trading around $63 in after-market hours Wednesday, up slightly from its close.

"Facebook's business is strong and growing, and this quarter was a great start to 2014," said CEO Mark Zuckerberg in the company's announcement.

When Facebook went public in 2012, the company faced questions from investors over its ability to make money on mobile devices. But in recent quarters the company has consistently grown its ads business on mobile, and now that's where the majority of Facebook's revenue comes from.

In its previous earnings report in January, the company reported that for the first time, the amount of money it made on mobile as a percentage of all ad revenue had crossed the 50 percent threshold for the first time.

The company faces other challenges now in increasing its user base -- and keeping its users engaged. In its results, the company said that it now had 1.28 billion monthly active users -- a 15 percent increase year-over-year, but only a 4 percent increase from the number reported last quarter.

Facebook said Wednesday that it had 1.01 billion monthly active users on mobile, representing a 34 percent increase year-over-year.

Facebook also announced Wednesday that its chief financial officer, David Ebersman, would be leaving that position in June after nearly five years on the job. He will be replaced by David Wehner, currently Facebook's vice president of corporate finance and business planning.

Facebook will take questions from investors and financial analysts during a conference call Wednesday afternoon. Zuckerberg is likely to be asked about the success of specific types of ad products, such as mobile app install ads, which are seen as being lucrative for Facebook.

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

Blog Posts

5 cornerstones of a strong digital culture

Creating a strong company culture may sound like a daunting task, but it’s actually pretty straightforward. In fact, company culture is created in exactly the same fashion as a religion or democracy. Behaviours created from the organisation’s inception are reinforced over time by leadership, attracting like-minded people and eventually reaching critical mass to become an accepted ‘truth’.

Anthony Stevens

Founder and CEO, Digital Asset Ventures

Should you rebuild your company’s tech stack in blockchain?

The question I get asked most regularly these days is: ‘Do I need to rebuild my company’s systems on Blockchain?’ And the answer, every time, is ‘No, you’re asking the wrong question’.

Michelle O'Keeffe

CEO, Engaging.io

Customer value proposition: Getting the brand promise to your customers right

Throughout my career, I have witnessed a litany of brand names that profess to have a unique customer value proposition (CVP). In reality, however, they’ve had little more than a ‘value proposition’: A simple list of benefits applied to a general audience.

Ric Navarro

Global director of marketing and communications, Norman, Disney & Young

We supply petroleum product such as JP54, D2, D6, JET A1, Serious buyer should contact now for SCO in order to work with seller workable ...

Vico Peißker

ACCC releases Consumer Data Right draft framework for comment

Read more

What is your opinion about chatbots serving your customers? My belief is bots are going to be the future of customer service and fulfilme...

Giridhar Prathap Reddy

NAB taps power of AI chatbots for business customer service

Read more

Thanks for writing about chatbots. Definitely bots have the exciting future when it comes to customer engagement, transactional and conve...

Giridhar Prathap Reddy

Deloitte TMT Predictions: AR and mobile crucial for marketing success in 2018

Read more

Hi there! Thanks for this interesting article! I love to read about new technology and software that makes our lives easier. I'm looking ...

Julia Summer

Wartsila overhauls Web platforms to create ‘seamless’ brand experience across all devices

Read more

RE: Sales and marketing SLAs, often the choke point isn't the teams but them getting the data into the tools they want to use with the da...

Ed Fry

Why sales and marketing alignment is more important than ever

Read more

Latest Podcast

More podcasts

Sign in