• 10 tips to find bargains

    Susan Erasmus gives advice on how bargain hunters can get the most bang for their buck.

  • Inside Labour

    Labour's bitter breaches need to be seen in historical context, says Terry Bell.

  • Rich getting richer

    Economists differ on how to tackle the chasm between rich and poor, says Leopold Scholtz.

See More

Facebook revenue surges 40%

Jan 31 2013 07:20 Reuters

(File) (Shutterstock)

Related Articles

Facebook CEO donates $500m in stock

Bosses take fun out of Facebook

Facebook mobile growth allays fears

Games play into Facebook's future

Beware: Facebook could get you fired

Facebook, Twitter ads lift mobile revenue

San Francisco - Facebook's  advertising business grew at its fastest clip since before the company's May initial public offering, helping the company's revenue expand 40% to $1.585bn.

Shares of Facebook were down 2.5% to $30.45 in after hours trading on Wednesday.

Facebook said its mobile business accounted for 23% of total ad revenue, compared with 14% in the third quarter.

But some investors may have been expecting more.

"Mobile revenue was expected to be a little higher," said Aaron Kessler, an analyst with Raymond James, who said he was looking for mobile revenue to be 25% of total ad revenue.

"Overall a solid quarter but maybe high expectations going into the quarter," said Kessler.

Facebook shares, which lost more than half their value following its May initial public offering, have regained ground in recent months as concerns about its mobile ad business and insider selling have eased. Shares have surged roughly 60% since mid-November.

Facebook, the world's largest online social networking service, said net income in the fourth quarter was $64m, or 3 cents a share, compared with $302m, or 14 cents a share in the year-ago period.

Excluding certain items, Facebook said it earned 17 cents a share.

Facebook has ramped up its online advertising services in recent months, putting a greater emphasis on mobile ads and introducing capabilities that let marketers target Facebook users based on their web browsing history.

Advertising revenue in the fourth quarter grew 41% to $1.33bn, with mobile ads representing 23% of Facebook's ad revenue.

Facebook's overall fourth-quarter revenue was $1.585bn, versus $1.131bn in the year-ago period.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.



Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

Brought to you by BizNews

More from BizNews

We're talking about:


Johannesburg has been selected to host the Global Entrepreneurship Congress in 2017. "[The congress] will ensure that small business development remains firmly on the national agenda and the radar screen of all stakeholders, the Small Business Development minister said.

Top 10 richest musicians of all time

Check out the gallery to find out who they are!


Luxury living

Seven of the most expensive children's toys ever made
5 millionaires turned murderers
The youngest billionaires in the world and how they made it
Watch: Flying first class has never been this luxurious!

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

How do you see your boss? He/sheis:

Previous results · Suggest a vote