The social networking giant Facebook reports that the profits for its first quarter of this year is $642 million, (EUR 383 million), surpassing analyst expectations.
According to BBC, the company has earned $2.5 billion in mobile advertising itself, giving rise in the higher revenue of 72%. You can go through a very detailed financial results released by Facebook for its investors, in the source link posted at the end of this article.
Comparing to the last year mobile advertising revenue which was 30%, this year it made 59%.
David Ebersman, the chief finance officer would be stepping down after working for the company for five years, as announced by Facebook.
However, David will continue to work for the company till September, he said he wants to return to healthcare industry.
Mr. Ebersman’s vacancy will be replaced by David Wehner, the vice president of corporate finance and business planning for Facebook. He was a former chief financial officer at Zynga, the gaming company.
Mark Zuckerberg, the founder and the Chief Executive officer of Facebook, said that the social networking website’s business was growing and it is strong, and with such profits it made a great start for the year 2014.
Facebook shares have risen to a high of 4.3% in the after-hours of trading.
The firm said it has reached 1.28 billion active users in this period, and the users who access the site through smartphone or tablet are more than a billion.
The firm’s mobile advertising business barely generated money few years ago, but with such revenues this year, it is planning for grow its mobile business by expanding its product offerings, which includes the launch of news application paper and Facebook’s Messenger service.
Instagram, the photo sharing app was bought by Facebook in 2012 and recently it has agreed to buy WhatsApp, the mobile text messaging service for $19 billion.
The users of Facebook on handheld devices and portable devices are increasing, so we can expect the mobile advertising to rise even further.
According to eMarketer, the research firm, there is a rise for global digital advertising of 14.6% to $119.8 billion in 2013.
This year it is estimated that global advertising for mobile will rise 14.8% to $137.5 billion. Whereas, last year it grew 105% to $18 billion and this year it may grow to another 75.1% reaching $31.45 billion.
Facebook is expected to beat Google for mobile and digital advertising market this year, which has bulk of market share.
What do you think about the revenue success of Facebook in the first quarter? Share your opinions in the comments field below.
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