New York: Facebook reported Tuesday a strong rise in quarterly advertising revenues and said its take from mobile users was gaining as it beat analysts’ earnings forecasts.
The world’s leading social network, with more than a billion users, impressed weary investors in its second-ever quarterly report as a public company, sending its shares climbing more than eight percent in after-hours trade to around $21.14.
The company booked a second consecutive quarterly loss, of $59 million in the third quarter, weighed down by accounting rules requiring it to set aside reserves for stock compensation.
Excluding those costs, net earnings were a positive $311 million and earnings per share hit 12 cents, one cent above analyst expectations.
Revenues totaled $1.26 billion, up 32 percent from a year earlier and 6.7 percent from the second quarter.
But, after months of doubts over whether the company could make money from its massive network and user database, the company touted its surge in advertising income.
Advertising brought in $1.1 billion in the third quarter, up 36 percent from a year earlier and 11 percent from the prior quarter.
Facebook said 14 percent of the advertising take came from the mobile sector, the area most challenging to the company as more of its users log in on their cell phones rather than large-screen computers, where ads are more easily displayed.
“People who use our mobile products are more engaged, and we believe we can increase engagement even further as we continue to introduce new products and improve our platform,” said Facebook founder and chief executive Mark Zuckerberg.
“At the same time, we are deeply integrating monetization into our product teams in order to build a stronger, more valuable company.”
Facebook went public in May with a resounding flop, its $38 initial public offering price immediately plunging to eventually less than half that.
That angered many investors who had built hopes that the company’s huge popularity would result in huge gains in the share price.
Dear TNT Reader,
At The News Tribe, our mission is to bring you free, independent, and unbiased news and content that keeps you informed and empowered. We are committed to upholding the highest standards of journalism, as we understand that we are a platform for truth.
Apart from independent global news coverage, we also commit our unique focus on the Muslim world. In an age marked by the troubling rise of Islamophobia and widespread misrepresentation of Muslims in Western media, we strive to provide accurate and fair coverage.
But to continue doing so, we need your support. Even a small donation of 1$ can make a big difference. Your contribution will help us maintain the quality of our news and counteract the negative narratives that are so prevalent.
Please consider donating today to ensure we can keep delivering the news that matters. Together, we can make a positive impact on the world, and work towards a more inclusive, informed global society.
Donate Monthly Subscription Annual Subscription