Facebook Inc. : Growing Stronger Through Smartphones

Mark Zuckerberg , Facebook

(Image credit : AP.  Photo/Paul Sakuma, File)

Social Media giant Facebook Inc. announced its Q2 results  last Wednesday. Facebook Inc.’s revenue reported an all time high Q2 2013 revenue of $1.81 billion, an increase of 53%, compared with $1.18 billion in the second quarter of 2012.

Facebook’s major chunk of revenue comes from advertising which grew by 61% to $1.6 billion. Putting aside rumors of increase in inactive users. Facebook reported an increase of 27% daily active users  to 699 million users, while its monthly user base increased by 21% to 1.05 billion users.

facebook-q213

Image Courtesy :  deondesigns

Second Quarter 2013 Results 

Revenue — Revenue for the second quarter of 2013 totaled $1.81 billion, an increase of 53%, compared with $1.18 billion in Q2 2012.

  • Revenue from advertising was $1.60 billion, representing 88% of total revenue.
  • Mobile advertising revenue represented  41% of advertising revenue for Q2 2013.facebook-q2-2013-revenue

Costs and expenses — GAAP costs and expenses for the second quarter of 2013 were $1.25 billion, a decrease of 35% from the second quarter of 2012.

Operating margin — GAAP operating margin was 31% for the second quarter of 2013, compared to negative 63% in the second quarter of 2012.

Capital expenditures — Capital expenditures for the second quarter of 2013 were $268 million, a 35% decrease from the second quarter of 2012.

Facebook’s results were as per Wall street’s expectations. As Mark Zuckerberg , Facebook founder and CEO noted in his speech

We’ve made good progress growing our community, deepening engagement and delivering strong financial results, especially on mobile.

Mobile segment represented around 41% of net revenue for second quarter of 2013. Mobile growth has been a key area of growth for Facebook and Mark Zuckerberg highlighted the strong influence of the company’s geographies of growth in the mobile sector.

Around 469 million users daily access Facebook on mobile devices.This number is an impressive growth compared to 425 million users in Q1 and 293 million users in Q2 2013.

facebook-mobile

Facebook also shared the average revenue per user from different countries .

Facebook-ARPU-Q2-2013

Worldwide Facebook earned $1.60 per user, but only $0.63 per user in the “rest of the world” geography. This area  holds big potential for Facebook’s growth. Growth in these areas in coming years would act as the key reasons for Facebook’s growth in coming quarters.

Facebook today looks strongly poised to grow more stronger and further cement it’s position as the king of Social networking. With some good acquisitions, Facebook could even give Google a run for its money. In the words of Mark Zuckerberg

The work we’ve done to make mobile the best Facebook experience is showing good results and provides us with a solid foundation for the future

Results courtesy : Facebook Inc.

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One thought on “Facebook Inc. : Growing Stronger Through Smartphones

  1. Pingback: Shikhar Tech Labs | Facebook Q2 2013 Results Released

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