News

More than 70% of Facebook’s Revenue Is Mobile

Facebook has shown us a thing or two about itself in its first three years as a public company. It knows how to make serious amounts of money, is increasingly mobile and keeps attracting users even though it seems as if every person on the planet who has access to the internet already uses it.

The humongous company reported its first quarterly month earnings today. It has 1.44 billion monthly active users and another 1.25 billion on mobile devices, an increase of 13% and 24%. Facebook has an insane amount of users overall, coming in at a whopping 936 million active users every single day.

Their overall revenue rocketed up to $3.45 billion, up 42% than the same time frame last year. The shift to mobile is continuing with 73% of the company’s revenue coming from mobile adverts compared to 59% last year.

The company had net income of $1.19 billion, up 28 percent compared to $926 million for the first quarter of 2014. The company saw more than four billion daily video views. “Video is exploding on mobile,” said COO Sheryl Sandberg on the earnings call. Revenue was low compared to expectations, while profits were high, and the stock was largely flat in after-hours trading.” The Verge reported.

“Facebook’s costs were way up. It spent $2.61 billion, an increase of 83 percent year over year. Not surprisingly this shrunk its operating margin to 26 percent compared to 43 percent in the first quarter of 2014.The company’s biggest expense as a percentage of revenue was research and development, and on the earnings call the company indicated this was its biggest driver of new hiring as well.”

Sounds to us like Facebook are expanding into the market wherever they see an opportunity. Mark Zuckerberg has been adamant that the company will continue this approach and will invest in areas such as solar-powered drones and virtual reality to keep on the cutting edge of the forever changing market.

Thank you to The Verge for providing us with this information.

Image courtesy of PerthGazette

Robert Ainsworth

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