Facebook's mobile business is making big strides, counting for
nearly one of every three of its ad dollars last quarter.
The social network announced quarterly results yesterday that showed its mobile strategy is paying off, even though it comes at the expense of its desktop business.
"We have seen strong growth and engagement across our community," Chief Executive Mark Zuckerberg said in the earnings announcement.
Facebook earned 12 cents a share, and analysts predicted 13 cents. However, revenue of $1.46 billion exceeded expectations of $1.44 billion.
Thirty percent of advertising came from mobile, as 751 million of its 1.1 billion users access Facebook from smartphones and tablets monthly.
"Mobile was in line with our estimates, but desktop advertising came in below," said analyst Ken Sena with Evercore Partners.
The company launched Facebook Home, its most ambitious mobile product yet, in mid-April. The software can be downloaded to certain Android phones, integrating the devices tightly with the social network experience.
Home is just one example of how heavily Facebook is building with mobile in mind and developing advertising products for palm-sized screens.
Two quarters ago, the $152.6 million in revenue from mobile accounted for only 14 percent of Facebook's advertising dollars. In the first quarter of this year it took in $375 million, and in all generated $1.25 billion in ad revenue, a 43 percent year-over-year rise.
"Overall, user metrics appear strong," Sena said. "Instagram only makes their position stronger."
Facebook said Instagram, the popular photo-sharing service it bought last year, topped 100 million monthly users last quarter.
Facebook is approaching the one-year anniversary of its initial public offering on May 18, 2012.
Shares are still well below their $38 IPO price. Yesterday, they rose 8 cents in after-hours trading to $27.51.
Originally published by Garett Sloane.
(c) 2013 The New York Post. Provided by ProQuest LLC. All rights Reserved.
Most Popular Stories
- Obama Plugs ACA on Zach Galifianakis Show
- Rand Paul Takes Pot Shot at Ted Cruz
- Senate Dems Pull All-Nighter on Global Warming
- Why New Workers Can't Get Ahead
- Dianne Feinstein Accuses CIA of Spying on Congress
- 'The Bachelor' Juan Pablo Picks His Love
- Snowden Urges Silicon Valley to Resist Internet Spying
- FBI Helping Ukraine Recover Stolen Billions
- Miley Cyrus Performs in Undies After Costume Goes Missing
- Software Writers Sought in Indiana