Menu
Facebook strengthens its grip on mobile, latest earnings show

Facebook strengthens its grip on mobile, latest earnings show

Total sales of more than US$2 billion are up 60 percent from a year ago

Facebook's mobile app.

Facebook's mobile app.

Facebook made new gains in its efforts to monetize its mobile business in the third quarter, reporting Wednesday that those devices drove nearly 50 percent of its advertising sales.

Total revenue for the quarter ended Sept. 30 was US$2.02 billion, the company reported in its earnings announcement, up 60 percent compared to $1.26 billion during the same period last year. The company's sales topped expectations of $1.91 billion, based on projections of analysts as polled by Thomson Reuters.

Revenue from advertising was $1.8 billion, up 66 percent from 2012's third quarter, Facebook reported. Ads on mobile devices constituted roughly 49 percent of those sales, the company said.

Profits were strong, too. Net income for the quarter was $425 million on earnings per share of $0.17, compared to a net loss of $59 million and a loss per share of $0.02 during the year-ago period.

Excluding share-based compensation expenses and related payroll tax expenses and adjustments, earnings per share were $0.25, up 108 percent from last year.

Mobile is a critical area of Facebook's business as more Internet users migrate away from the desktop in favor of devices like smartphones and tablets. Driving advertising on mobile can be challenging for Internet companies, but Facebook has been making inroads. The mobile gains reported Wednesday show a continuation of steady mobile advertising growth since late last year.

Facebook's mobile advertising sales have risen from 23 percent of total revenue in 2012's fourth quarter, to 30 percent in 2013's first quarter, and finally to 41 percent last quarter.

"The strong results we achieved this quarter show that we're prepared for the next phase of our company, as we work to bring the next 5 billion people online and into the knowledge economy," Facebook CEO Mark Zuckerberg said in a statement, referring to the company's Internet.org campaign.

The company stands to grow its mobile advertising sales further, given the launch of products like ads on Instagram, the popular photo sharing app owned by Facebook.

Earlier this year Facebook said that building mobile products would be a focus for 2013.

Facebook also grew its monthly active users during the quarter to 1.19 billion, an increase of 18 percent compared to last year. On a monthly basis, many of the company's users -- 874 million -- are also active on mobile, according to 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

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesInternet-based applications and servicessocial networkingfinancial resultssocial mediainternetFacebook

Featured

Slideshows

Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Show Comments