Facebook nears $3 billion in quarterly revenue while crushing Q2 estimates

Facebook nears $3 billion in quarterly revenue while crushing Q2 estimates

Summary: CEO Mark Zuckerberg offered a succinct, if not humble, reflection in prepared remarks: "We had a good second quarter."

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With most analyst eyes on mobile ad returns, Facebook reported second quarter earnings after the bell on Wednesday.

The world's largest social network reported a net income of $791 million, or 30 cents per share (statement).

Non-GAAP earnings were 42 cents per share on a revenue of $2.91 billion, a whopping increase of 61 percent from the same quarter last year.

Wall Street was expecting earnings of at least 32 cents per share on a revenue of $2.81 billion.

In the wake of crushing analyst estimates, CEO Mark Zuckerberg offered a succinct -- if not humble -- reflection in prepared remarks: "We had a good second quarter."

The total monthly active user (MAU) count hasn't budged all that much (at least from a macro viewpoint), jumping from roughly 128 billion last quarter to 1.32 billion as of June 30.

Mobile has been at the forefront of Facebook's revenue strategy for some time now.

Mobile MAUs were 1.07 billion as of June 30, up 31 percent year-over-year. Additionally, mobile advertising revenue accounted for 62 percent of total advertising revenue during the second quarter, up 41 percent year-over-year.

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The Facebook Developers team revealed more details on Tuesday as to how the Menlo Park, Calif.-headquartered company is using device-level targeting to improve mobile app ad performance.

Up until now, Facebook has only offered such tools for targeting iOS and Android devices in general. The social network is planning to roll out device-specific targeting features, for smartphones such as a Samsung Galaxy S5, iPhone 5s, or an HTC One, within the next week.

Looking further ahead, analysts expect Facebook to deliver Q3 earnings of 34 cents per share on a revenue of roughly $3 billion.

Slides via Facebook Investor Relations

Topics: Mobility, Apps, Data Management, Privacy, Social Enterprise

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9 comments
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  • Good quarter

    A good quarter but that stock price is still way high. An investment shouldn't take years to maybe break even.
    Buster Friendly
    • Then Amazon must scare you silly.

      It will take decades at its stock price. At best, AMZN is worth $20/share.
      Bruizer
      • A bunch of them

        There's a bunch of tech bubble 2 stocks. TSLA is the king of the dumb buys by quite a margin.
        Buster Friendly
  • now ya know why prices are so high

    now ya know why prices are so high. this lol corporation makes its money from over 95% adverting dollars which we pay for at the registers for all products. Think you don't support fartbook??lol think again. You and I may not be members but we are paying there salaries. and you and I have a lot more power over fartbook then you think. call some advertisers you don't like a fartbook policy and you will not buy there products anymore and watch how fast the change things
    Stan920
    • Real struggle

      That was a real struggle to be negative.
      Buster Friendly
  • Facebook, like Google and Twitter, are dependent on a "close to static"

    number of users of their services.

    When the number of users for Facebook get close to saturation, growth will hit a wall, and then what? In fact, when the number of active users starts shrinking, Facebook will take a tumble.
    adornoe@...
    • That's every company

      That's pretty much every company on the planet. As companies get larger, their growth tends to flatten out and follow the growth of the economy. There's always more people in the world.
      Buster Friendly
      • Not every company on the planet has "one" product or service to depend

        on for growth. That's why I said that Facebook and Google need to diversify. The more products and services that a company has, the more sources for revenue they have; the more sources of revenue, the more that a company can "sell" to a single consumer or company.

        It's like a consumer in a super-market: the more products there are, the more potential sales there are to a single customer.

        A company such as Google or Facebook, can become stagnant with a set number of consumers, and just one product or two.
        adornoe@...
  • Google is also another stock which is too dependent upon a close to static

    number of users of their services.

    Google's earnings continue to be close to the same figure quarter after quarter, with no real hope of growth. Google and Facebook need to diversify.
    adornoe@...