Facebook sales leap, amid a growing mobile ad business

Mobile ad sales comprised nearly 60 percent of the company's total ad sales

Facebook earnings for the past five financial quarters

Facebook earnings for the past five financial quarters

Facebook reported a nice 72 percent boost in sales for the first quarter, as the company continues to make strides expanding its advertising business on mobile devices.

Total revenue for the period ended March 31 was US$2.5 billion, Facebook reported Wednesday, beating analysts' estimates of $2.36 billion, as polled by Thomson Reuters.

Net income was $642 million, nearly tripling the $219 million in profit reported for the same quarter in 2013. Earnings per share for 2014's first quarter were $0.25, up from $0.09 in the year-ago period. Excluding share-based compensation expenses and related adjustments, Facebook's earnings per share were $0.34, soaring past analysts' expectations of $0.24.

Facebook makes the bulk of its revenue from advertising -- $2.27 billion for the quarter, up 82 percent from last year, the company said. Mobile advertising constituted about 59 percent of that total.

Facebook's stock was trading around $63 in after-market hours Wednesday, up slightly from its close.

"Facebook's business is strong and growing, and this quarter was a great start to 2014," said CEO Mark Zuckerberg in the company's announcement.

When Facebook went public in 2012, the company faced questions from investors over its ability to make money on mobile devices. But in recent quarters the company has consistently grown its ads business on mobile, and now that's where the majority of Facebook's revenue comes from.

In its previous earnings report in January, the company reported that for the first time, the amount of money it made on mobile as a percentage of all ad revenue had crossed the 50 percent threshold for the first time.

The company faces other challenges now in increasing its user base -- and keeping its users engaged. In its results, the company said that it now had 1.28 billion monthly active users -- a 15 percent increase year-over-year, but only a 4 percent increase from the number reported last quarter.

Facebook said Wednesday that it had 1.01 billion monthly active users on mobile, representing a 34 percent increase year-over-year.

Facebook also announced Wednesday that its chief financial officer, David Ebersman, would be leaving that position in June after nearly five years on the job. He will be replaced by David Wehner, currently Facebook's vice president of corporate finance and business planning.

Facebook will take questions from investors and financial analysts during a conference call Wednesday afternoon. Zuckerberg is likely to be asked about the success of specific types of ad products, such as mobile app install ads, which are seen as being lucrative for 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

Join the PC World newsletter!

Error: Please check your email address.

Tags business issuesadvertisingInternet-based applications and servicessocial networkingfinancial resultsmobilesocial mediainternetFacebookmobile applications

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Zach Miners

IDG News Service
Show Comments

Essentials

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?