Facebook Reports Big Revenue Increase, Thanks to Mobile
Seventy-six percent of advertising revenue came from mobile apps, up from 62 percent in Q2 2014 and 73 percent in Q1 2015.There a debate going around Silicon Valley about which might be the best-run company, and Facebook is always in the conversation. In its Q2 2015 earnings report July 29, the social network reported revenue of $4.04 billion, beating Wall Street analyst projections of $3.99 billion. This represented a 39 percent increase in year-over-year revenue (it totaled $2.9 billion in the same period last year), due in large measure to national brands that are spending more to advertise to the company's 1.49 billion monthly users. The latter figure, by the way, represents a 13 percent increase over a year ago, so it's clear that the Menlo Park, Calif.-based company isn't losing momentum in that department. In fact, Facebook has been picking up older users faster than it has attracted younger people, but that's another story. Facebook claims 968 million daily active users, up 17 percent year-over-year.
Profit was $719 million, down 9 percent from Q2 2014's $791 million. This, the company said, was due to higher operating expenses of $2.76 billion, compared to $1.5 billion a year ago. Facebook had advised investors that 2015 was going to be a year of investment in R&D, so this was not a surprise. For example, Facebook is developing Oculus, a 3D virtual reality headset, in addition to other potential products.