Facebook reports record rise in revenues spurred by mobile advertising
Facebook reported a record 63% rise in revenues for the fourth quarter of 2013, driven by robust mobile advertising sales which accounted for more than half the company’s total ad revenue.
The California-based social networking site, which turns 10 next week, earned $2.59 billion, between October and December of 2013, compared with $1.59 billion in the fourth quarter of 2012. Revenues from advertising contributed $2.34 billion of sales, a 76% increase from the same quarter the previous year.
‘It was a great end to the year for Facebook,’ said Mark Zuckerberg, Facebook founder and CEO. ‘We’re looking forward to our next decade and to helping connect the rest of the world.’
The company claims it now has 757 million daily active users, an increase of 22% year-over-year, with 556 million accessing its services on mobile devices.
The results come on the back of media reports speculating the future of Facebook and its failed marketing proposition to advertisers.
Last week a study from Princeton University claimed the social network would fade out “like a disease” and lose 80% of its users by 2017. Meanwhile, in October market research firm Forrester released the results of a survey that ranked Facebook at the bottom of the value chain among 13 marketing channels, concluding that ‘Facebook creates less business value than any other digital marketing opportunity.’
Fourth Quarter 2013 Financial Highlights
- Revenue for the fourth quarter of 2013 totaled $2.59 billion, an increase of 63%, compared with $1.59 billion in the fourth quarter of 2012.
- Revenue from advertising was $2.34 billion, a 76% increase from the same quarter last year.
- Mobile advertising revenue represented approximately 53% of advertising revenue for the fourth quarter of 2013, up from approximately 23% of advertising revenue in the fourth quarter of 2012.
- Payments and other fees revenue was $241 million for the fourth quarter of 2013.
Full Year 2013 Business Highlights
- Revenue for the full year 2013 was $7.87 billion, an increase of 55% year-over-year.
- Income from operations for the full year 2013 was $2.80 billion.
- Net income for the full year 2013 was $1.50 billion.
- Free cash flow for the full year of 2013 was $2.85 billion.
- Daily active users (DAUs) were 757 million on average for December 2013, an increase of 22% year-over-year.
- Mobile DAUs were 556 million on average for December 2013, an increase of 49% year-over-year.
- Monthly active users (MAUs) were 1.23 billion as of December 31, 2013, an increase of 16% year-over-year.
- Mobile MAUs were 945 million as of December 31, 2013, an increase of 39% year-over-year.
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