Facebook Revenue Climbs 60 Percent, Led by Mobile Ads
Revenue jumped to $2.02 billion from $1.26 billion a year ago, with $1.8 billion of that specifically from advertising.Facebook's mobile advertising strategy, which some analysts believe should have been in place before it went public in May 2012, is now beginning to instigate some real income. The world's largest social network zipped right past Wall Street's projections Oct. 30 in reporting its third quarter numbers, showing a 60 percent increase in revenue that it attributed largely to strong growth in its mobile advertising business. Revenue jumped to $2.02 billion from $1.26 billion a year ago, with $1.8 billion of that specifically from advertising. Net income rose to a solid $425 million (17 cents per share) over a loss of $59 million in the year-ago quarter. Excluding some items, company profits were $621 million (25 cents per share), up from $311 million in the third quarter of 2012. Revenue from mobile ads that show up in the application on smartphones and tablets comprised half of Facebook's total advertising revenue, amounting to about $880 million. This was a huge increase over the $150 million it earned in the mobile business in the third quarter of 2012, before Facebook had rolled out most of its mobile ad strategy.
Thomson Reuters analysts had expected Facebook to report earnings of 19 cents a share on $1.91 billion in revenue.