Facebook Reports Better Than Expected Earnings, $2.5 Billion in Revenue & Has Over 1 Billion Mobile Users
Facebook reported first quarter earnings after the close today. Earnings beat expectations coming in at $0.34 cents a share. The company now has 802 million daily users with 609 million of those being mobile.
The company was trading down on Wednesday but is up in after hours.
After Hours: 63.69 +2.33 (3.80%) Apr 23, 6:46PM EDT
Tech Crunch covered the release here
Facebook’s is getting more and more mobile, now with 1.01 billion users on small screens. It’s Q1 2014 earnings show it beat expectations, earning $2.5 billion in revenue with an $0.34 EPS. It now has 1.28 billion total monthly users, 802 million daily users, and 609 million daily mobile users. Facebook continued its march to become a mobile ad company with 59% of ad revenue coming from portable devices. Wall Street had expected $2.36 billion in revenue and earnings of 24 cents per share.
Compared to Q4 2103, Facebook’s total user count is up 4% from 1.23 billion total monthly users, total daily user count is up 5.9% from 757 million, and daily mobile user count is up 9.5% from 556 million. Mobile ads made up 53% of ad revenue in Q4, the first time they peaked over 50%, and now account for 57% of ad revenue.
Time Magazine covered the release here
Facebook once again exceeded analyst projections in its latest quarterly earnings report Wednesday, as the world’s largest social network continued to show investors it can transition its advertising business to mobile devices.
Mike Isaac wrote on Recode that Facebook will be launching their own mobile ad network.
Lots of people have wanted Facebook to build an ad network for a long time.
Here it comes. Facebook will take the wraps off its plans for a mobile ad network at its “F8″ developer conference in San Francisco at the end of the month, according to multiple sources familiar with the matter.
Facebook will pitch the ads to publishers and developers as a way to leverage the social network’s vast database of user information for better ad targeting. And Facebook wins by expanding its ad reach — now it can make money from its billion-plus users even when they’re not on Facebook’s own properties.
Facebook declined to comment.
In the past, Facebook stayed away from building out an ad network because it was busy trying to sell ads on its own Web site. And it couldn’t contemplate a mobile ad network until recently because it didn’t have any mobile ads of its own.
But that has changed dramatically in the last two years. In the last three months of 2013, mobile ads generated $1.24 billion for Facebook — more than half the company’s overall ad revenue. And we’ll get another peek at how well that business is doing when Facebook reports its first-quarter earnings later this week.
A good chunk of that — perhaps 50 percent or more — comes from “app-install” ads, which prompt users to download apps or re-engage with apps they’ve already installed. The ad product was initially an afterthought in Facebook’s mobile ad strategy, led by Facebook engineering and platform leader Mike Vernal, who at one point only had a single engineer working on the project.
Read the full article here
Facebook will report its earnings on Wednesday, it will be interesting to see where mobile ad revenues stand, and if they mention anything about a new ad network.
Victoria Wagner Ross wrote a piece on Examiner.com about Facebook getting into the money transfer business. One analyst stated that they see this as a potential boost to Bitcoin and crpyto currency in general down the line.
Facebook is advancing its reach to provide a money transfer service in Europe from a base in Ireland. The Guardian announced on Monday that Facebook was seeking the e-money commerce status to issue digital credits for conversion into cash for its customers.
Storing the money within the social network would allow Facebook opportunities to compete with Western Union and give storing of money within the social network options to buy online. It currently allows within apps forms of money transfer in the US through payments within the King games of Candy Crush Saga and Farmville games. Facebook gets a 30% cut from that action the same as Apple takes 30% from its game and apps in its Apple stores when an app is purchased.
What does this type of e-commerce system do for cryptocurrency Bitcoin in global money transfers and payments? Thomas Alvarez, Coincove’s bitcoin-based remittance specialist, sees Facebook’s market entry could remove the stigma from monetary services attached to social networks. That attitude of global transfers and payments is a plus for the bitcoin industry.
Boost VC founder and CEO, Adam Draper, finds the bitcoin lining in this as the big ‘Net’ companies tackle the issue of transfers and payments, and states, ‘this is exciting, it means that the big companies are playing in the same space.’
Read the full story here
Today Facebook rolled out video ads, these ads will be autoplay ads which I am sure will quickly have some ranting and raving to do away with it. With the sheer size of Facebook this could turn out to be a huge number of video ads playing on a monthly basis.
O frabjous day! Callooh! Callay! The Jabberwock is, er, Facebook video ads are here! Our news feeds will now be inundated with autoplay video ads. Yippee? Well, it’s a big step forward for the world’s largest social network to say the least. They’ve been working on video ads for what seems like years and now we can all get them in news feeds. Don’t go overreacting (I’m just joking around) there will be no more than three ads per day.
In terms of frequency, that is 90 ads per month per viewer. If there are 600 million users and say 50% are in markets where the ads debut it comes out to a massive 27 billion video ads a month. Ker-Pow! At the low end of the price spectrum rumors of $1-2.5M per ad, that’s $27 billion in revenue, per month, on the low end.
Facebook just announced that it’s starting to run the video ads that it started testing last fall.
In a company blog post, Facebook says it’s working with “a select group of advertisers,” and that users can expect to start seeing the ads “over the next few months.” The 15-second videos will start auto-playing without sound as they enter your screen, and if you tap, they’ll expand and un-mute.
Apparently the ad-buying process (which Facebook has been trying to simplify in other areas) will be “similar to how advertisers already buy and measure ads on TV.” The idea is to “reach a specific audience over a short period of time,” with ad delivery measured by Nielsen Online Campaign Ratings.
It’s probably safe to assume that not all users will be thrilled to see the new ads, particularly since the auto-playing aspect will make it easier for them to grab your attention. However, Facebook executives have said that introducing more ads into the News Feed has had a “limited or negligible impact” on user engagement.
Read the full story on Tech Crunch…
Business Insider did not one but two articles on Scott DeLong and his ViralNova.com. ViralNova makes it bacon with click bait. DeLong started a site that in just 8 months gets 100 million visitors.
From the article:
Most people dream of getting rich instantly. That’s why the lottery is so popular.
One man, Scott DeLong, found a way to do it. Eight months ago, he founded ViralNova.com. It’s a media company that uses click-baity headlines to draw in readers. The content is perfect for Facebook sharing. Headlines include:
- It Might Look Like A Normal Chandelier. But When You Stand Underneath It And Look Up…Wow.
- This Guy’s Crazy Idea Started To Make His Wife Nervous. But It Was Worth It, Trust Me.
Last month, his website pulled in 100 million visitors. That means, 100 million people visited ViralNova.com. DeLong uses remnant ads (cheap ads, like Google AdSense). There are two ads on every page. A site like ViralNova, which pulls people in via external links, usually has a high bounce rate (or people who leave the website quickly). That means each user is probably reading one or two articles, and ViralNova’s two ads are probably running on 100 – 200 million pages every month.
this reminds me of sites like Mahalo that were good at gaming google SEO until google changed its algo with Panda update or Zynga when Facebook prevented them from spamming the newsfeed.
This is a guest post by Kevin Ohashi. Kevin is a 10 year veteran of the domain industry. He currently is working his startup, Review Signal, which transforms the opinions people share publicly on social media into a review site for consumers. It currently provides web hosting reviews and will review domain registrars soon.
I was reading Mark Cuban’s thoughts about Facebook trying to get him to pay to reach his fans. It’s an interesting opinion and one I can empathize with. The crux of it is this picture:
Brands have spent millions of dollars getting people to ‘Like’ their brands. Now, Facebook is asking them to pay more to reach the audience they already paid to build. It feels fundamentally unfair because Facebook has changed the rules of the game half way through.
Of course, there is another perspective to consider: the users. They probably don’t want every brand spamming them. There is some ambiguity to the word ‘Like’. Some would argue it’s not a laissez faire situation where brands are free to advertise to every user as much as they want. Facebook’s EdgeRank is supposed to improve the user’s experience by curating what users see in their feed (and it just so happens that more money greases the EdgeRank wheels).
That’s a quick synopsis of the article. Let’s get back on topic.
Why is this important to domainers?
Mark Cuban is advocating for brands to maintain more control over the way they communicate with their audience. He’s promoting Twitter, Tumblr, Instagram and MySpace (no joke!). It’s not mentioned in the article, but there is still only one place that the brand still maintains full control: their domain name(s).
I’ve argued in the past that domains are becoming less necessary as brands opt to use social networks for their primary web presence. Facebook has about one sixth of the world’s population as users. It’s easier to manage, easier to share content and easier to reach your audience (assuming you have money to spend).
This is a real kick back from brands. Maybe it’s just one guy. Maybe not. But it should be a good reminder that when you buy into these social networks, you’re potentially making a deal with the devil. They control the rules and you are beholden to them and the changes they decide to make in the future. Your relationship with your fans is moderated by someone else.
In the developer community we worry a lot about building our software on top of someone else’s platform. We’ve seen Twitter take out competitors it didn’t like and restricting their API to control what developers can do. Perhaps it’s reckoning time for brands. Maybe they will experience the risk they’ve put themselves at by investing into social media on platforms they don’t control and that don’t have an established business model.
Let me be clear: I don’t think this will stop brands from using social media. However, it may be the first of many tiny cuts in Facebook’s business model which moderates how it will deal with brands. Some brands may decide to try to control their fans’ experience more and invest in their own domains. At the margin, there may be some increased demand for domain names. Which is good news for domainers and the first good news I’ve seen in a while for the industry. I think the longer term outlook is still fairly grim for most of the industry, but end user demand is the only bright spot in my mind.
- Facebook Vanity UserName Release Details
- Exchange for Twitter User Names Bending The Rules, Making Usernames More Like Domains
- Demand Media Will Offer New Programming Tools With CoverItLive
- Other Domain Name News for Jan 12-18, 2009
- Domain Name News Acquires DNN.com
It looks like Facebook has finally gotten control over one of the most popular typo variations of it’s website. As Fusible first reported a few days ago, according to DomainTools.com historical records, wwwFacebook.com had expired in late May of this year and was listed on the SnapNames marketplace available for a backorder. The previous owner used whois privacy protection services from Moniker to keep their identity hidden.
Fusible goes on to say “while many companies have been forced to file complaints to secure rights to their “WWW” typo domains, it appears Facebook acquired the domain name through the brand protection company MarkMonitor.” It is not clear whether the previous registrant simply handed over the domain when demands/threats were made, or whether the domain registrar (Moniker) got involved and did the right thing by transferring the domain to it’s rightful owner.
As of this writing, the domain name wwwFacebook.com currently does not resolve to anything or forward to Facebook.com. The domain is now registered and held with MarkMonitor, Facebook’s domain name registrar of choice.
- Facebook to Introduce Vanity URLs
- Why Businesses Should Not Rely On Facebook URLs For Advertising
- Facebook Typos Deleting Wednesday
- Merck Sues Facebook Over Username
- FaceBook files TypoSquatter Lawsuit Based on Domains
Recently we’ve seen more and more companies use Facebook URLs in their advertising. While other marketers, and also of course domainers, are against the practice, it appears this is now a more relevant question. Facebook recently took the URL facebook.com/muenchen away from the official city portal and reserved it for their own use.
Facebook URLs – Yours today, gone tomorrow? Facebook is planning to create city portals
As German news-site Heise Online reported Facebook apparently took away the URL facebook.com/muenchen from the official portal of the city Munich (Muenchen in German) first citing technical difficulties as the reason. For more than a week the Facebook page has not been reachable under its old address.
The page had gathered almost 400,000 fans according to Lajos Csery, who is the manager of the company operating the city portal. In an interview with Bayerischer Rundfunk, he stated that there had been no advance notice from Facebook and when they inquired about the issue they were told that there was a technical issue. Later on they found out that Facebook is planning to set up their own city portals and Facebook has now moved the page to facebook.com/Stadtportal.Muenchen (city portal Munich), which so far only has about 1,200 “likes”. Facebook told the operator that the “fans” will still be moved to the new page. City names without additions are no longer permitted as Facebook URL names according to the recently changed rules of Facebook.
In a similar story pharmaceutical company Merck sued Facebook, in order to receive information why “their” Facebook URL to a US company with the same name. According to the BBC, Facebook had cut a deal with the company but had not followed through with giving the company the URL.
As Facebook becomes an important marketing tool and usernames and vanity URLs become more coveted, you can be sure that Facebook will find a way to monetize on this. Savvy marketers should be more and more wary of using these URLs in offline marketing and protect themselves for the possibility that “their” Facebook URL will be taken away too.
- Facebook to Introduce Vanity URLs
- Facebook Vanity UserName Release Details
- Merck Sues Facebook Over Username
- WordPress To Use .ME For Shorter URLs
- Facebook Typos Deleting Wednesday
Do Facebook and Twitter need a UDRP?
As reported by Tech:Blorge today, German pharmaceutical giant Merck is suing Facebook in a New York Court (reported by WSJ) to demand details as to why Facebook will not allow them to use the “facebook.com/merck” username for their Facebook page.
According to Tech:Blorge, “The German firm came first, while the US firm was created using American assets surrendered by the German firm during the first world war. To minimize confusion and to avoid trademark disputes, the German firm is known as EMD Chemicals in North America, while the US firm is known as Merck Sharp & Dohme outside of North America.”
The German company says it cut a deal with Facebook last year allowing them exclusive rights to the address but has failed to follow through (BBC).
What do you think, do we need UDRP-like rules for social media URLs?
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