08 Nov, 2013 – Latest earnings have shown Facebook making profitable gains in its efforts to enhance its mobile business. Reports have made it absolutely clear that mobile advertising has driven nearly fifty percent of Facebook’s total advertising sales.
Total revenue for the quarter complete up to the end of September month was $2.02 billion. The company says that the earning has rose up to sixty percent compared to the $1.26 billion last year. The company’s sales expectations of $1.91 billion were supported by projections of analysts.
According to the Facebook earnings announcement, revenue from advertising was $1.8 billion that was up sixty-six percent from 2012’s third quarter. Ads on mobile devices mainly smart phones recognized roughly around forty-nine percent of these sales. Profits have been sturdy, too being somewhere around $425 million on earnings per share of $0.17, compared to a web loss of $59 million and a loss per share of $0.02 throughout the year-ago amount.
The earnings per share have been hovering around $0.25 that was up 108 percent from last year. These earnings exclude the share-based compensation expenses and the connected payroll tax expenses along with some changes.
Nonetheless, mobile advertising seems to have done the trick this time for Facebook. Withstanding tough competition from Twitter as well as Google, both giants in the market, Facebook has managed to do exceedingly well for itself.
Mobile could be an important space of Facebook’s business as a lot of users seem to prefer Smartphones and tablets instead of the good old desktops. Driving advertising on mobile are often difficult for companies online, however Facebook has been making some serious success in this case. The mobile gains according to the latest earnings definitely show a continuation of steady mobile advertising growth since late last year.
Facebook’s mobile advertising sales have by all odds increased from twenty-three percent of total revenue in the year 2012’s fourth quarter, to forty-one percent till date. This is no surprise as mobile advertising is undoubtedly the fastest growing advertising sector these days allowing rich inroads for the concerned companies.
Bearing on the company’s Internet.org campaign, Facebook CEO Mark Zuckerberg has sated that “The strong results that we have achieved by this quarter just show that we are ready and prepared for the next step in our company, as we work hard to bring the next five billion people into the knowledge economy online.”
The company stands to grow its mobile advertising sales more, given the launch of product like ads on Instagram, the popular picture sharing app that is owned by none other than Facebook. Earlier this year Facebook also stated that building mobile product would be its chief focus for the year 2013.
Facebook has inadvertently grown its monthly active users throughout the quarter to 1.19 billion, a rise of eighteen percent compared to the growth last year. On a monthly basis, several of the company’s users 874 million to be precise are now active on their mobiles, making their online presence with Facebook.