Facebook has posted higher earnings on Wednesday for the second quarter, as revenue from mobile advertising continued to grow, and more people used it, more often. The company claims to have about 1.32 billion monthly users around the world in June, with more than a billion of those people using the service at least partly on mobile devices.
In the earnings release for Facebook Inc., it earned USD 788 million, or 30 cents per share, in the April-June period. That’s up from USD 331 million, or 13 cents per share, in the same quarter an year ago. After the results came out, in extended trading the company’s shares climbed nearly 4 percent, signalling that they could hit a record high when the stock market opens on Thursday. Two years ago, during company’s initial public offering, the investors who bought — and held on to — Facebook stock are now close to doubling their money.
Associated Press says: According to a poll by Zacks Investment Research, “Adjusted earnings were 42 cents per share, handily beating Wall Street’s expectations of 33 cents.” Last year, in the same quarter, Facebook’s revenue jumped 61 percent to USD 2.91 billion from USD 1.81 billion. Analysts expected USD 2.8 billion. This was the fifth quarter in a row that Facebook beat Wall Street’s forecasts.
“We had a good second quarter,” said CEO Mark Zuckerberg in a statement. “Our community has continued to grow, and we see a lot of opportunity ahead as we connect the rest of the world.”
According to a research firm eMarketer, In 2013, Facebook had a nearly 6 percent share of the market compared with Google’s 32 percent. This year, Facebook is expected to grow its slice to nearly 8 percent, while Google’s should decline slightly, to just below 32 percent.
Advertising revenue jumped 67 percent to $2.68 billion. Mobile ad revenue, a closely watched figure, was 1.66 billion, or 62 percent of Facebook’s total advertising revenue for the quarter. In the first three months of the year, mobile ads accounted for 59 percent of Facebook’s total ad revenue.
The steady increase indicates that Facebook is succeeding in steering advertisers to its mobile platform at a time when most of its users are using mobile devices to access the social network.
Facebook has been growing its share of the worldwide digital advertising market, but it’s still a long way from catching up to rival Google Inc.
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