Facebook revenue surges 63% on strong ad sales

Phone in front of Facebook t-shirt Facebook has been growing its mobile user base, a crucial metric for advertisers

Related Stories

Social networking giant Facebook has reported profits of $523m (£316m) and a 63% increase in revenue for the fourth quarter, beating expectations.

The boost in revenue was mostly due to stronger mobile advertising sales, a priority of boss Mark Zuckerberg.

Advertising revenue increased 76% from the same period last year, with more than half of that coming from mobile.

Overall, Facebook said it had 757 million daily global users as of December 2013.

For the full year for 2013, Facebook reported profits of $1.5bn and said its daily active users grew by 22%.

"It was a great end to the year for Facebook," said Mr Zuckerberg in a statement.

"We're looking forward to our next decade and to helping connect the rest of the world."

Facebook shares soared more than 10% in after-hours trading on the news.

Growing share

Facebook turns 10 years old next Tuesday, completing a remarkable transformation from a project started in Mr Zuckerberg's student room to a global empire with more than 1.23 billion monthly users.

Two years ago, Facebook had no revenue from mobile advertising sales.

Since then, the firm has made a concerted push to spruce up its mobile app in order to woo users and advertisers.

"2013 was the year we turned our business into a mobile business," said Mr Zuckerberg in a call to discuss the earnings.

According to research firm eMarketer, Facebook had a 16% share of all mobile advertising dollars spent in the US this year, up from 9% in 2013.

This comes after Facebook surpassed Yahoo as the number two digital advertising seller in the US.

Globally, Google is still the dominant player, with a 32.4% share of the $117.6bn spent on digital advertising in 2013.

Picture perfect?

On the call to discuss earnings, Facebook executives also highlighted two big Facebook apps: Messenger and Instagram, which Facebook bought for $1bn.

Chief financial officer David Ebersman said Instagram doubled its user base, but did not name specific figures.

Mr Ebersman declined to discuss the advertising load on Instagram, saying: "We're just really early with Instagram... We're going to move slowly because we think that's the right thing to do."

Mr Zuckerberg also highlighted the growth of Facebook's Messenger, saying the number of users was up 70%. He did not break down usage by region.

More on This Story

Related Stories

From other news sites

More Business stories

RSS

Features

  • SyedTanks instead of toys

    Lyse Doucet on the plight of children in Syria and Gaza


  • Silhouette of manSuper-shy

    Why do Germany's super-rich so often keep their heads down?


  • Children playing in Seoul fountainDay in pictures

    The best news photos from around the world in the past 24 hours


  • Gin drinkerMother's ruin

    The time when gin was full of sulphuric acid and turpentine


From BBC Capital

Programmes

  • The smartphones of shoppers being tracked in a storeClick Watch

    How free wi-fi can enable businesses to track our movements and learn more about us

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.