Facebook Shares Rise after Revenue Increase
It seems that Facebook may have finally made some progress towards making profits from mobile phone browsing.
On Tuesday it unveiled its latest quarterly results and beat analysts’ expectations.
Earlier this month the number of mobile monthly active users rose 61% to a massive 604 million. While Facebook did post a loss of $59 million in the third quarter, its advertising business posted a 36% rise in revenues to $1.09 billion.
Better still for the social network, 14% of ad revenues came from mobile use, an area where analysts have expressed concerns about making money.
CEO Mark Zuckerberg said that “our opportunity on mobile is the most misunderstood aspect of Facebook today.” He said that mobile would be “fundamentally good” for Facebook.
The news led to the company’s shares soaring in after-hours trading, at one point by as much as 20%.
In his presentation to analysts, Zuckerberg spent time confronting “the myth” that Facebook could not make money from ads.
He said that the company was just beginning to monetise mobile and he expected advertising revenues from mobile to continue to rise.
This is much needed good news for the social network which has seen its value drop from $100 billion to $41 billion since its first day of trading.