Facebook saw its profits more than double for the second quarter of 2014 as investors drove its shares to an all-time high yesterday in after hours trading after the world’s largest social media company reported financial results that exceeded Wall Street estimates.
“We had a good quarter” said Facebook CEO Mark Zuckerberg. “Our community has continued to grow, and we see a lot of opportunity ahead as we connect the rest of the world” Zuckerberg added.
Facebook’s decision to place more emphasis on mobile advertising has clearly paid off for the company after the social site accounted for 5.8 percent of the world’s estimated $120 billion in digital advertising in 2013, according to eMarketer.
Mobile advertising revenue for Facebook represented approximately 62 percent of its advertising revenue during the 2nd quarter of 2014, up from approximately 41 percent in the second quarter of 2013.
Facebook is seeking to broaden its mobile advertising platform and even include ads on Instagram.
Facebook’s quarterly revenue from advertising was $2.68 billion, a 67 percent increase from the second quarter of 2013.
Total revenue was $2.91 billion, up 61 percent from $ 1.81 billion during the second quarter of 2013.
Facebook’s mobile users are spending more time on the social media site connecting with friends and viewing content.
Mobile monthly active users (MAU’S) were 1.07 billion as of June 30, 2014, an increase of 31 percent year over year.
Mobile daily active users (DAU’s) were 654 million on average for June 2014, an increase of 39 percent year over year.
Facebook Building Out Search
Facebook CEO Mark Zuckerberg said in the conference call that as of last month, on average, more than one billion search queries are made every day on Facebook.
“This is a great milestone and it shows we are in a unique position to answer a lot of questions for people. But this is just a start” Zuckerberg said.
“And over the next few years as we make progress on building out search and our broader efforts in artificial intelligence, I expect us to deliver even greater utility for people” he added.
In March Facebook spent $2 billion acquiring Oculus VR, a producer of virtual reality headsets.
In February Facebook spent $19 billion acquiring WhatsApp, a popular text messaging app.