Facebook’s Earnings Beat Projections – For 8th Quarter In A Row

  • Thursday, August 14 2014 @ 06:55 am
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Just when you think Facebook couldn’t possibly get any bigger than it already is, it goes and shatters all expectations. For the 8th quarter in a row, Facebook’s earnings beat projections.

Much of that growth is in mobile, where Facebook is growing twice as fast as it is compared to its services as a whole. Facebook currently logs 654 million daily mobile users and 1.07 billion mobile users each month. Thanks to the continued increase in smartphone usage, 62% of the social network’s ad revenue came from mobile in Q2. In total, Facebook now has 829 million daily users and 1.32 billion monthly users. Altogether, they are responsible for a spectacular 2nd quarter for Facebook. The company beat Wall Street’s estimated earnings of $2.81 billion to end Q2 2014 with $2.91 billion in revenue.

Here’s how that stacks up against Q1 2014:

  • Facebook's total user count is up 3.125% from 1.28 billion total monthly users to 1.32 billion
  • Total daily user count is up 3.36% from 803 million to 829 million
  • Monthly mobile user count is up 5.9% from 1.01 billion to 1.07 billion
  • Daily mobile user count is up 7.4% from 609 million to 654 million

Revenue isn't the only way Facebook is exceeding expectations. Some critics have said the social network is losing its influence with Western users, but its monthly user count in the USA and Canada grew by 2 million this quarter. And for anyone who dared to suggest that Facebook wouldn't survive the transition from desktop to mobile, Facebook's 391 million mobile-only users dwarf its 240 million desktop-only users.

Internationally, Facebook is showing equally impressive numbers. Ad revenue is up everywhere, and the site hit an all-time high average revenue per user in every region around the world.

The only low point was payments revenue, which Facebook largely derives from the 30% tax on the in-app purchases from its Web games platform. Total payments revenue dropped slightly to $234 million from $237 million in Q1. On the plus side, it's still up 9% compared to Q2 2013.

On the horizon for Facebook now is the launch of Facebook Audience Network, the company’s mobile ad network that will bring in revenue by incorporating its targeted ads in other companies' apps. Another big development is Slingshot, a photo and video messaging app that Facebook hopes will be a competitor for Snapchat.

When asked for his thoughts on Facebook’s remarkable 2nd quarter, all CEO Mark Zuckerberg had to say was “We had a good second quarter. Our community has continued to grow, and we see a lot of opportunity ahead as we connect the rest of the world.”

To find out if this social network makes a good dating tool you can read our Facebook review.