Facebook has its best quarter ever thanks to strong mobile advertising revenues.
During Facebook’s Q3 earnings call, CFO David Ebersman said that the social networking giant managed to net a revenue of $2.02 billion, which was much higher than the $1.9 billion revenue industry analysts estimated. The revenue generated this quarter is 60 percent more than what Facebook managed to do in Q3 2012, and a major contributor to that increase is mobile advertising.
Overall advertising revenue garnered by Facebook was $1.8 billion, which is an increase of 66 percent from last year. Of this $1.8 billion, 49 percent was from mobile advertising, which is a massive gain from the 14 percent in Q3 2012. Facebook now accounts for 15.8 percent of overall mobile advertising, and this number is significantly larger than the 5.35 percent it accounted for back in 2012. Last year saw a profit of 12 cents a share, and this number doubled to 25 cents a share thanks to the strong revenues.
Facebook has seen an incredible amount of growth over the last year, and has mentioned that it has 1.19 billion monthly active users (MAUs), which is an increase of 18 percent year-over-year, and 729 million daily active users (DAUs), which is a 25 percent year-over-year increase. Mobile DAUs were 507 million last month, which grew by 45 percent since last year.
As a result of all the increased growth, Facebook shares soared to an all-time high of $56, but came down to $49.01 by the end of the day. The share value has nearly doubled over the last quarter, and it looks like the growth is set to continue. However, the earnings call did include some worrying facts. For the first time, Facebook saw a decline in the number of teen users logging in to the service. That doesn’t mean that Facebook has any cause for concern right now.
Mark Zuckerberg said in a statement at the earnings call that they are focused on connecting the next five billion. “For nearly ten years, Facebook has been on a mission to connect the world. The strong results we achieved this quarter show that we’re set for the next phase of our company, as we work to bring the next five billion people.”