Facebook Shows Solid Earnings as Mobile Ads Trend Up
Facebook reported its second-best fiscal quarter as a public company on May 1, and even though its revenue tailed off a bit from the previous quarter, the company's Q1 2013 earnings were generally on target with Wall Street projections.
The Menlo Park, Calif.-based social network brought in $1.458 billion in the first three months of 2013, compared with $1.585 billion in Q4 2012. Profits totaled $213 million, compared with $256 million in the last financial period.
Facebook banked earnings per share of 12 cents. Revenue grew 38 percent compared with the same quarter a year ago.
Wall Street analysts had predicted revenue of $1.44 billion and 13 cents per share, so Facebook exceeded the first figure and missed the second by a penny.
The company's newly revamped mobile advertising accounted for some 30 percent—or about $375 million—of its ad revenue for the quarter. Total revenue from advertising came out to $1.25 billion, or 85 percent of total revenue.
Analysts were expecting about $1.25 billion in total advertising revenue with 27 percent ($340 million) coming from mobile advertising.
"We've made a lot of progress in the first few months of the year," CEO and co-founder Mark Zuckerberg said in a statement. "We have seen strong growth and engagement across our community and launched several exciting products."
Facebook's charts showing monthly and daily active users look like a perfect stairway with the growth so steady. The company reported that it had 1.11 billion monthly active users as of March 31, 2013, up from 680 million two years ago.
Facebook increased its daily active users to 665 million people—an increase of 26 percent year over year. The company is seeing its greatest growth in the mobile user area. Zuckerberg said Facebook had 751 million monthly mobile active users by March 31, which is a 54 percent year-over-year upsurge.
Facebook closed Wednesday at $27.43 per share, still below its May 18, 2012, IPO starting price of $30.