Facebook earnings are in, and they are looking really good across the board — especially in mobile. The social networking giant reported its Q2 earnings with earnings per share of 19 cents on revenue of $1.81 billion. Those numbers beat analysts’ estimates of an EPS of 14 cents on revenue of $1.62 billion.
The company also said in Q2 2013 it had 699M daily active users, 1.15B monthly active users, and 819M monthly active users on mobile. By the way, that monthly active users on mobile number is an increase of 51 percent year-over-year. That’s incredible.
What is perhaps the most impressive stat comes from the mobile ad numbers, mobile advertising revenue represented about 41 percent of Facebook’s $1.60 billion in total advertising revenue in the quarter. That’s a stark comparison from last quarter when mobile made up just 30 percent of ad revenues for Facebook.
Perhaps Facebook has finally figured out how to monetize on mobile. Facebook CFO, David Ebersman, was certainly happy with the results in mobile, “One of the things this quarter says to us is that News Feed ads work,” said Mr. Ebersman.
It hasn’t been easy for Facebook over the past year and half, as the company has faced intense criticism from investors that the company couldn’t handle the massive shift from desktop to mobile use. This was a major concern on Wall St. as most of Facebook’s advertising products were optimized for desktop users, and only over the past year has it tried to shift towards a “mobile first” environment.
That “mobile first” environment has led to rapid updates to its mobile apps, keeping them up-to-date with the latest features, sometimes even ahead of the the desktop releases. It also has led to the expansion of the Facebook app ecosystem, which in return has led to the increase in app install ads–that you have most likely noticed appear in your News Feed within the Facebook app.
Facebook closed at $26.51 and is trading up in after hours–up over 16% to $30.97.