Facebook Q3 revenue grows 32% to $1.26 billion, looks to mobile for future prosperity
It’s that time of the year when companies are opening up to the world about their financial success, or lack thereof. Facebook’s Mark Zuckerberg braved Wall Street once more to discuss about the company’s Q3 financial result and the road it plans to take to get more streams of revenue.
The good news: the third quarter revenue beats analysts’ forecasts, as it jumped 32% to $1.26 billion. This matched the revenue growth percentage posted in Q2, but better than the forecasted 29% year-on-year growth.
The not-so-good news: Facebook suffered a quarterly net loss of $59 million, which was a stark difference from the $227 million net income it posted on the same quarter the previous year.
Other operational highlights for the quarter include reaching Monthly Active Users (MAUs) of 1.01 billion as of September 2012, and Daily Active Users (DAUs) of 584 million on average for the same month. Not surprisingly, 60% from the recorded active daily users browsed Facebook on their mobile devices.
Dissecting the revenue pie even further, the report revealed that advertising made up 86% of the total revenue with $1.09 billion. Investors were mostly thrilled to learn that Facebook has made some progress with their efforts to introduce ads on mobile devices, as 14% of the total advertising revenue – roughly $150 million – came from mobile ads.
Zuckerberg was quick to convince investors that things can only improve from here on now. “I want to dispel this myth that Facebook can’t make money on mobile,” says the CEO. He then said that the company is “just getting started.”
During the earnings call, he also mentioned that those who own mobile devices are 70% more likely to use Facebook, compared to 40% than those on desktop machines. Zuckerberg is betting big on the company’s eventual success at making more money from mobile users in the coming years.
Given the importance that the social company is placing on mobile devices, focusing on developing a better Android app is key. Facebook also recently inked a deal with Bango to provide a simple mobile payment solution for virtual goods bought on the website. It won’t hurt either to learn a thing or two about monetizing mobile devices from Google, as the latter aims to make $8 billion mobile-related revenues this year.