Facebook revenues top $3.2bn in last three months as mobile use grows

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Facebook’s revenues topped $3.2bn in last three months as the social media giant increased its share of the mobile advertising market, the company announced on Tuesday.

The figure was a 59% increase on the same period last year and came as the percentage of advertising it takes from mobile grew to 66% from 49% a year earlier.

Facebook now has 1.35 billion people logging on each month, up 14% from last year, and 864 million logging on daily, also an increase of 14%. The pace of growth has, however, slowed and was up from 1.32 billion in the previous quarter.

Again mobile proved Facebook’s fastest growing area. The number of monthly active users (MAUs) logging into their accounts via mobile devices was 1.12 billion as of 30 September, a 29% rise year-on-year.

“This has been a good quarter with strong results,” said Mark Zuckerberg, Facebook co-founder and CEO. “We continue to focus on serving our community well and continue to invest in connecting the world over the next decade.”

Overall the company reported a profit of $806m, up from $425m a year earlier.

Facebook stock had risen more than 25% this year. Shares closed on Tuesday at $80.77, close to its record high, and slipped slightly in after-hours trading. The results were in line with analysts’ expectations and came despite a warning from the company during its last earnings call that investors should not expect the same kind of growth in the second half of the year.

In July the company announced a 61% increase in revenue during the second quarter as Facebook attracted news users and advertisers spent more money. But the company warned that it did not expect the same level of growth in the second half of the year.

In the second quarter, Facebook reported more than $2.6bn in ad sales, which was a 67% increase year-over-year. Mobile advertising, an area where Facebook initially struggled, accounted for about 62% of all ad revenue.

Facebook is expected to take 8% share of the $140.7bn global ad market in 2014, according to eMarketer, up from 5.8% in 2013.

Brian Wieser, senior research analyst at Pivotal Research in New York said the results were better than expected. “The challenge is how they keep on growing. Managing a company of this scale is a challenge, few companies have had to do it,” he said.

James Gellert, chief executive of Rapid Ratings, contrasted the results with those of Twitter, which reported on Monday. Twitter’s share price slumped close to 10% on Tuesday as investors worried about slowing growth.

Powered by Guardian.co.ukThis article was written by Dominic Rushe in New York, for theguardian.com on Tuesday 28th October 2014 21.06 Europe/Londonguardian.co.uk © Guardian News and Media Limited 2010