Facebook Inc. has given its investors a reason to celebrate with the recent announcement of its Q2 earnings performance results, reporting a 53% increase in revenue to $1.81 billion from $1.18 billion in the second quarter of 2012. Also, the maximum revenue is being generated by its advertising business representing 88% of total revenue and a 61% increase from the same quarter last year.
As compared to second quarter in 2012, the company has managed to reduce its expenditures and losses and has gained a net income of $333 million in Q2 for present year. This turnaround is said to be achieved mainly due to the increase in its mobile advertising revenue which accounted for 41 percent of its total advertising revenue.
The Q2 results have shut the critics of Facebook down who ever doubted about it’s advertising strategy. It has been a matter of discussion for long that whether Facebook will be able to convince marketers to display ads on its social networking site and whether its users will find it comfortable to get pinged with ads while interacting with their friends.
Also, in Q2, 2013 Facebook have crossed many milestones which have given the company a long path of success to map in future. In words of Mark Zuckerberg, the work they have done to make mobile the best Facebook experience is showing good results and will provides them with a solid foundation for the future.
Here are some recent Business Highlights for Facebook:
Surpassed 1 million active advertisers on Facebook, driven by significant growth in local businesses.
Introduced video for Instagram and saw 5 million videos uploaded in the first 24 hours.
Launched products including Verified Pages, hashtags and embedded posts to help people on Facebook connect with their friends about what’s taking place all over the world
Announced that there have now been over 100,000 apps built on Parse, a cloud-based platform that provides scalable cross-platform services and tools for developers to enable them to build apps that span mobile platforms and devices.
Facebook’s data center in Lulea, Sweden, began serving live user traffic around the world using Facebook’s Open Compute Project designs and renewable energy.
The Q2 results clearly indicates that the initiatives of Facebook to focus on improving its ad offerings have worked pretty well for the company. Where Google has shown a weaker than expected results for the quarter, Facebook on the other hand have just blew off the Wall street’s forecast.
Also according to reports, the mobile advertising revenue for Facebook is expected to reach over $2 billion this year. Also, the social media giant is working to increase its international advertising revenue by capitalizing on its 100 million+ user base in countries like India, Indonesia and the Philippines as a next phase of its growth.