Monday 28 July 2014

Facebook Defies Expectations With A Q2 Revenue Of $2.9 Billion

By Musa Mustafa


It looks like Facebook's incredible success won't be ending anytime soon! The site revealed their latest quarter earnings, and they took in $2.9 billion in revenues. This was even higher than the 2.81 billion analysts had predicted. In addition, they beat the earnings per share prediction by 10 cents. Facebook's stock went up almost 4%, and closed at $71.29. Shareholders were very pleased by Facebook's announcement.



Boy were all the skeptics wrong. Facebook still is the predominant social media outlet, and they have control over so many aspects of online business. Everything was set up for the company to turn extremely nice profits post-IPO, and that trend has definitely continued.

For one, advertising revenue increased significantly. They made $2.63 billion from ads, up 67% from this period in 2013. The revenue increase is even higher when you discount the impact of changes in foreign exchange rates. Most of that money came from mobile ads, which brought in 62% of Facebook's advertising revenue. This is up from 41% this time in 2013. They also made $235 million in revenue from payments and fees.

What is also appealing about Facebook's stock is that it can be bought for under $100 a share, which is great compared to other Internet monopoly stocks, such as Google. Facebook's advertising revenue for the 2nd quarter was 2.68 billion dollars. Many people who used to be skeptics have watched Facebook perform quarter after quarter and its brand remain strong. With nothing changing, and the business expected to continue to increase profits, why not jump on in?

Mobile usage is also on the rise. In fact, a whopping 399 million of Facebook users access Facebook on their phones exclusively. 1.07 billion users log on with their mobile devices at least once monthly. This information should make it easier for Facebook to increase their mobile advertising revenue even more. Right now, Facebook appears to be unstoppable. It will be interesting to see how the company continues its growth in the future.

Where has the revenue been coming from that has led to this jump? There are multiple sources out there for those who are interested in seeing what FaceBook has done at the micro level. However, in general the leading social media platform has been able to use advertising as a means to generate a substantial amount of money in a short period of time. This has been partnered with all of the mobile advertising that has been done in order to boost revenue and profit margins. It has led to the brand growing more and more as time has gone on.




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