On Wednesday Facebook revealed it’s 4th quarter earnings results and they surpassed the expectations of analysts. According to results, the mobile ads revenue of company increased by 9% as compared to the year-ago-quarter. In simple words, Facebook showed that finally it has been successful in monetizing it’s mobile traffic. This was being thought as one of the biggest challenges for Social Networking giant as more and more people were sticking themselves to the smaller screens of smartphones and tablet devices.
According to report, company’s total revenue for the fourth quarter remained $1.59 billion. $1.33 billion out of this amount came from ads. 23% of ads revenue came from mobile devices, which was $306 million in figures. This is well above from the 14% revenue mark that was reported by the company in third quarter.
According to Facebook, it’s mobile users increased by 57% in the fourth quarter. Company said that for the first time ever in the timeline of Facebook company has seen more active users on mobile devices as compared to traditional desktops or laptops. Company reported 680 million active mobile users for the platform, and 157 million out of them were exclusively mobile users who don’t ever use a laptop or desktop for accessing the site.
A big reason for the jump in ad revenue seems to be the implementation of “Sponsored Stories” in the News Feeds of users. Company also displays several “app install ads” on mobile devices in a timely manner. These ads seem to be generating most part of the mobile advertising revenue for Facebook. Walmart alone displayed the 50 million Facebook ads on mobile devices.
But this does not mean that company’s challenges are over. Next big thing will be to monetize Graph Search on mobile devices. And yes, all the news that came out from Facebook’s campus was not good. Profit of company has fell by 79% as a gift of heavy spendings. And company has said already yesterday that company’s profit may go down as compared to spendings in 2013 too. According to Zuckerberg, this year company will not work for maximizing profits; instead company’s focus will remain on hiring talented employees and on some other quality measures for increasing the profit in long-term.
After the report, company’s stock fell by 5% and Wall Street didn’t seem to be happy with the report.