Revenue surge for Facebook over hike in ad sales
Published 31/01/2014 | 01:30
Mobile advertising accounted for more than half of Facebook's total advertising revenue in the final quarter of 2013, a sign that the social network, born a decade ago in the desktop computer era, is succeeding in its goal of being "mobile first".
Facebook's earnings and revenue handily surpassed Wall Street's expectations for the third quarter in a row as it further expands the number of users and the amount of money it makes on mobile ads.
"If 2012 was the year where we turned our core product into a mobile product, then 2013 was the year we where we turned our business into a mobile business," chief executive Mark Zuckerberg said in a conference call with analysts.
"I expect 2014 will be the year where we begin to deliver new and engaging types of mobile experiences."
Facebook said it earned $523m (£317m), or 20 cents (12p) per share, in the October-December quarter, up from $64m (£38.7m), or three cents (1p) per share, a year earlier. Adjusted earnings were $780m (£472.7m), or 31 cents (19p) per share, in the latest quarter, four cents (2p) ahead of analysts' estimates.
Revenue grew 63% to $2.59bn (£1.56bn), from $1.59bn (£963m). Analysts on average had expected revenue of $2.35bn (£1.42bn), according to FactSet.
Facebook's stock soared 12% in extended trading after the results came out.
Facebook, which is 10 years old next week, had 1.23 billion monthly users worldwide at the end of 2013. Of those, 757 million signed in at least once a day, up 22% from a year earlier.