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…