Facebook capitalizing in ad revenue
With the giants filing their quarterly returns, Facebook has turned several heads by posting amazing revenue figures, most of which is contributed by mobile ad revenue.
Apparently, the company is capitalizing on its potential to drive revenue by showing ads in the newsfeed of users accessing Facebook on mobile devices. After the company filed the earnings report, the share values increased and CEO Mark Zuckerberg said that the company has a lot of work to do although it was a good quarter for them.
During the investor conference call, Zuckerberg said that Facebook will be focusing more on upbringing their new services like a Facebook search, private messaging, virtual reality, which could take up more revenues and that the company cannot expect returns until they are well developed.
“We think it is going to be years of work before those are huge businesses for us,” he said. “I really can’t underscore this enough that we have a lot of work to do. We could take the cheap and easy approach and put ads in and do payments and make money in the short-term, but we’re not going to do that” said Zuckerberg.
Facebook revealed in June that the company has about 1.3 billion users and more than 1 billion users access the service on mobile devices.
Looking at the revenue, the company got a net revenue of $2.8 billion against a $1.81 billion in the same quarter in 2013. Net income is $791 million and the operating profit is 48 percent in the second quarter.
“The core business is so strong that it’s buying them time to be more conservative and deliberate in bringing out new products”, said an Internet analyst. Nearly two-thirds of the company’s revenue come from mobile devices and the company is also looking forward to supplement the revenue with ads on other sites, too.