Facebook revenue jumps 40 percent in Q4 as mobile overtakes Web use
Facebook posted a revenue increase of 40 percent in the fourth quarter as the number of daily mobile users exceeded daily Web users for the first time ever, the company reported.
Revenue for the social networking company rose to US$ 1.59 billion in the quarter ended Dec. 31, up about 40 percent from $ 1.13 billion in the fourth quarter of 2011. The increase is a considerable uptick from the 32 percent year-over-year sales gain that Facebook posted in the third quarter of 2012.
The site’s monthly active users on mobile devices increased 57 percent year over year to 680 million; mobile daily active users also exceeded daily active users on the Web for the first time during the quarter, Facebook announced.
Total monthly active users were 1.06 billion, up 25 percent from the year-earlier quarter.
“In 2012, we connected over a billion people and became a mobile company,” CEO Mark Zuckerberg said in a statement.
Facebook’s mobile business also brought in a larger share of the company’s overall advertising revenue. It made up 23 percent of ad revenue, up from 14 percent of ad revenue in the third quarter.
Facebook’s total advertising revenue was $ 1.33 billion, representing 84 percent of the company’s total sales.
Facebook posted net income of $ 64 million for the quarter, representing a profit for the first time since the company went public last May. It reported a net loss of $ 59 million during 2012’s third quarter. However, the fourth-quarter profit was down more than 78 percent from the $ 302 million that Facebook earned a year earlier, before it was publicly listed.
Total annual revenue increased 37 percent to $ 5.09 billion.
Analysts are expected to question the strength of the company’s mobile business during a conference call at 5 p.m. Eastern time Wednesday.