Facebook Q1 revenue grows 72% thanks to mobile ads
Mobile ads represented 59% of ad revenue in Q1
Facebook's revenue was up 72% in first quarter thanks to its mobile ads, meaning that shares were up nearly 3% at $63.05 in after-hours trading on Wednesday, Reuters reported.
According to Facebook, mobile ads represented 59% of its ad revenue in the first quarter which is 30% more than the same period a year ago.
"They've got the right products for what advertisers are looking for and that's manifesting itself in the results you're seeing," said JMP Securities analyst Ronald Josey.
Facebook's newsfeed ads, which are suited for smaller-sized screens of smartphones and other mobile devices are cited as the reason for this increase in revenue and shares.
User numbers have also increased, the social network said its total number of monthly active users reached 1.28bn as of 31 March, with 1.01bn of those users accessing its service on mobile devices such as smartphones and tablets and spending more time on its service, with roughly 62.7% of its monthly users accessing the site every day, compared to 59.9% in the year-ago period.
Facebook said it earned $642m in net income, or 25 cents a share, in the first quarter, versus $219m, or 9 cents a share in the year ago period. Excluding certain items Facebook said it earned 34 cents a share in the first quarter, versus 24 cents a share expected by analysts.
Shares of Facebook have more than doubled during the past 12 months but are off 13% from a 52-week high of $72.59 in mid-March.
Facebook also announced that finance chief David Ebersman is resigning to pursue an opportunity in the healthcare industry, where he worked before joining Facebook in 2009. Ebersman, will remain with the company until September and then be replaced by David Wehner, Facebook's vice president of corporate finance and business planning.