Facebook Reveals Third Quarter Revenue, Surpasses Forecast Earnings
On Thursday, October 23, 2012 Facebook CEO Mark Zuckerberg announced third quarter earnings during a highly anticipated conference call held at 4:00 p.m. EST. With a net loss of $59 million for the third quarter versus a net income of $227 million at this time last year, Zuckerberg assured: “We are just getting started,” as he addressed the earnings report. He went on to dismiss the idea that his company’s new mobile advertising isn’t earning as highly as many expected with the announcement of overall growth and revenue for the year in comparison to figures from last year.
Zuckerberg’s announcement offered investors plenty of reassurance that his Palo Alto, California based organization is transitioning to meet the demands of it’s milestone 1 billion monthly users (reached on September 30, 2012.) Among these monthly users, over 604 million access the site with cell phones, iPads and other mobile devices marking a 61% rise in mobile formats since last year. Additionally, advertising growth and mobile gains pushed the organization to a 32% growth in the third quarter with revenue reaching $1.26 billion, an advertising revenue increase of 36% with revenue at $1.09 billion, and payments increasing by 13% to $176 million. Despite strong growth in some areas, the issue of gaming revenue is iffy. During the third quarter report, Zuckerberg expressed that that “ecosystem” of Facebook gaming has grown by 40% since this time last year yet overall there has been a three percent decline in revenue.
Overall, the earnings report helped boost public shares with an eight percent rise, pushing stock prices forward to reaching 45% of the initial public offering price. Financial analysts were impressed with the mobile advertising revenue which surpassed what they predicted would be $1.23 billion. Many have high expectations for company and want Facebook to prove their competitiveness and improve market shares in online advertising despite substantially high revenue and strong growth with earnings reaching over $3 million per day.