Facebook Inc(NASDAQ:FB)’s third quarter revenues
showed the doubting world of analysts and investors that the company is taking
its business seriously in terms of getting more revenues, especially from
mobile advertising.
The company’s third-quarter advertising revenue
increased by 36 percent year-over-year to $1.09 billion, accounting for 87
percent of the company’s $1.26 billion in overall Q3 revenue. That overall
figure in turn grew 32 percent from the prior year and slightly beat analysts’
estimates.
Considering the fact that mobile advertising revenues
were next to nothing in the first quarter and then rose to about $40 million in
the second quarter, the$150 million that it has in its kitty at the end of the
third quarter is a major achievement.
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As founder and chief executive Mark Zuckerberg pointed
out in an analyst’s conference call, the company's mobile business has been
much misunderstood.
The company started its mobile ads business only in
Aril and from then to its contributing 1 percent of total revenues is a big
jump for the company.
At last quarter's earnings call the company had said
that it generated about $1 million daily in ads from its News Feeds. Now that
number has risen to $4 million daily. About three-fourths of those revenues
come from ads shown in the mobile News Feeds.
Throwing light on some of its ad strategy Zuckerberg
said that the company was building a lot more integrated ad products now.
“We told every product team they’re responsible for
the ad experience in their product,” Zuckerberg continued. “What we’re seeing
is across each consumer product, a more tailored ad experience.”
Shares of FB soared 14.36% to $22.30 in the pre-open
session, well above its 50day moving average price of $20.45.
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