Facebook Q1 revenue grows 72 percent on rising mobile ads

SAN FRANCISCO Thu Apr 24, 2014 9:58am IST

The Facebook logo is pictured at the Facebook headquarters in Menlo Park, California January 29, 2013. REUTERS/Robert Galbraith/Files

The Facebook logo is pictured at the Facebook headquarters in Menlo Park, California January 29, 2013.

Credit: Reuters/Robert Galbraith/Files

Related Topics

Stocks

   

SAN FRANCISCO (Reuters) - Facebook Inc's (FB.O) mobile advertising business accelerated in the first three months of the year, helping the Internet social networking company top Wall Street's financial targets.

Shares of Facebook were up nearly 3 percent at $63.05 in after-hours trading on Wednesday.

Facebook said that mobile ads represented 59 percent of its ad revenue in the first quarter, up from 30 percent in the year-ago period. Facebook's overall revenue grew 72 percent year-on-year to $2.5 billion in the first quarter, above the $2.36 billion expected by analysts polled by Thomson Reuters I/B/E/S.

"They’ve got the right products for what advertisers are looking for and that’s manifesting itself in the results you’re seeing," said JMP Securities analyst Ronald Josey.

Facebook's newsfeed ads, which inject paid marketing messages straight into a user's stream of news and content, have ignited Facebook’s revenue growth and bolstered its stock price during the past year. The ads are ideally suited for the smaller-sized screens of smartphones and other mobile devices.

The world's No.1 Internet social network said its total number of monthly active users reached 1.28 billion as of March 31, with 1.01 billion of those users accessing its service on mobile devices such as smartphones and tablets.

Facebook's users spent more time on its service, with roughly 62.7 percent of its monthly users accessing the site every day, compared to 59.9 percent in the year-ago period.

Facebook also announced that Finance Chief David Ebersman is resigning to pursue an unspecified opportunity in the healthcare industry, where he worked before joining Facebook in 2009. Ebersman, who will remain with the company through September, will be replaced by David Wehner, Facebook's vice president of corporate finance and business planning.

Ebersman saw the company through a rocky initial public offering in 2012 that was plagued by technical glitches with the Nasdaq stock exchange and concerns about what was then slowing revenue growth. Since the IPO, Facebook has regained Wall Street's favor thanks to its strong mobile ad business.

Ebersman's departure appears to have been part of a planned transition, said JMP's Josey.

The company said it earned $642 million in net income, or 25 cents a share, in the first quarter, versus $219 million, or 9 cents a share in the year ago period. Excluding certain items Facebook said it earned 34 cents a share in the first quarter, versus 24 cents a share expected by analysts.

Shares of Facebook have more than doubled during the past 12 months but are off 13 percent from a 52-week high of $72.59 in mid-March.

(Reporting by Alexei Oreskovic; Editing by Cynthia Osterman)

FILED UNDER:
  • Most Popular
  • Most Shared

DEFENCE

REUTERS SHOWCASE

Intel's Valuation

Intel's Valuation

Intel could rise 30 percent over next two years - Barron's.  Full Article 

Canonisation

Canonisation

Pope declares sainthood of two Indians, four Italians.  Full Article 

Stake Sale Strike

Stake Sale Strike

Coal India trade unions call off strike in victory for Modi.  Full Article 

Interview with Bulgari CEO

Interview: Bulgari CEO

Bulgari CEO: we shouldn’t have left India so we’re back.  Full Article 

Formula One

Formula One

Hamilton takes second F1 title in style.  Full Article 

Available For Remake

Available For Remake

Bollywood finally wants to pay the price for remakes.  Full Article 

Davis Cup

Davis Cup

Vintage Federer seals first Davis Cup for Switzerland.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage