14 DAY TRIAL // Facebook is doing more than OK and the most recent numbers posted by the company indicate exactly that.
The social network reported a revenue growth for the second quarter of 2013 of 53 percent to $1.81 billion (€1.36 billion).
Aside from the tremendous growth, Facebook also announced that its profit was of 19 cents per share, more than Wall Street projections. This puts the GAAP net income at $333 million (€252 million), a lot better than last year’s $157 million (€119 million) loss in the same period of time.
The company has come a long way since its struggling first few months after the disastrous IPO from last year.
Mark Zuckerberg’s decision to bet on mobile last year is also paying off. The number of monthly mobile users rose to 819 million, 51 percent over last year’s result. Also, the number of daily users rose to 469 million.
This has also brought up the revenue coming from mobile ad sales. During the first quarter, mobile ads made up 30 percent of revenue, but they will soon account for over 50 percent of advertising dollars, according to the company’s CEO.
“This quarter represents a strong validation that we’re effectively navigating the shift to mobile. All the investments we’ve been making in the business have been paying off,” said David Ebersman, Facebook CFO, during the earnings call.
Aside from the financial side of the announcements, Facebook also reported an increase in the number of active users that grew up 27 percent to 699 million. Furthermore, the monthly active users number also increased to 1.15 billion.
The company has been putting in an effort lately to optimize their advertising offers. First, they simplified the options they had and now they’re trying to understand better which ads bring in more money and why.
According to a recent study, it seems that ads placed in the newsfeed are most effective.