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