Mobile advertising now represents 62% of the company’s total advertising revenue. The company reported its second-quarter earnings today.
Jonathan Ernst / Reuters / Reuters
Facebook posted another quarter that handily beat analyst estimates for its advertising business, with its quarterly advertising revenue rising 67% when compared to the same quarter a year ago.
Facebook also said it had 829 million people checking its applications every day. The company now has 1.32 billion people checking the service at least once a month, with more than 1 billion of those users checking Facebook's applications from their mobile devices.
The company reported earnings of 42 cents per share on revenue of $2.91 billion. Analysts were expecting earnings of 32 cents per share, and $2.81 billion in sales. The company said its revenue from its advertising business amounted to $2.68 billion, with 62% of that revenue coming from its mobile advertising products like its News Feed and Mobile App Install ads
Still, its quarter-over-quarter daily active user growth appears to have slowed slightly, increasing only 3.3% compared to the previous quarter. Its daily active users increased 18.6% compared to the same quarter a year ago, while the previous quarter they had increased about 20.6%.
This was not an issue apparently with Wall Street, which sent shares of Facebook rising about 2.5% after briefly falling when the earnings report came out. Around 63% of Facebook's overall user base checks the company's services at least once a day, which is a remarkably high level of engagement that makes Facebook a very attractive platform for advertisements.
While its core user base continues to grow, Facebook has been experimenting with a portfolio of new applications like Slingshot, a photo-sharing application where the photos are deleted after they are viewed, and Paper, a news reader type application — though neither of them has struck a dramatic chord with its user base the same way competitors like Snapchat have.
Still, Facebook remains a powerful audience for advertisers, and its newest advertising products — Mobile App Install Ads and its other mobile app-related ad products — has proven to be one of its most lucrative new businesses. Facebook didn't break out its App Install Ad business, but analysts peg it to be on track to generate $1 billion annually in mobile advertising revenue. Facebook's advertising business growth has led to a remarkable run in the company's share price, which has more than doubled in the past year.
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