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July 25, 2013

Facebook Mobile Ad Success Boosts Revenue, Sends Stock Soaring

Facebook’s second-quarter profit report surpassed Wall Street expectations and sent the social network’s stock soaring more than 19 percent in after hours trading Wednesday.

The company’s revenue rose to $1.81 billion — skyrocketing past analysts’ predictions of $1.62 billion. The 53 percent rise in revenue from the previous quarter is due, in large part, to a surge in mobile advertising, a platform that has concerned shareholders in the past.

Those concerns may very well be a thing of the past with Facebook selling $1.6 billion in ads, a 61 percent leap over the same quarter the previous year. Mobile advertising made up 41 percent of that total.

“We’ve made good progress growing our community, deepening engagement and delivering strong financial results, especially on mobile,” said Facebook CEO Mark Zuckerberg. “The work we’ve done to make mobile the best Facebook experience is showing good results and provides us with a solid foundation for the future.”

Facebook recorded profits of $333 million or $0.13 per share, a vast improvement over the net loss of $157 million for the second quarter of 2012, at $0.08 a share.

Second Quarter 2013 Operational Highlights

• Daily active users (DAUs) sat ate 699 million on average for June 2013, an increase of 27 percent year-over-year.

• Monthly active users (MAUs) were 1.15 billion as of June 30, an increase of 21 percent year-over-year.

• Mobile MAUs were 819 million as of June 30 an increase of 51 percent year-over-year.  Mobile DAUs were 469 million on average for June 2013.

 

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