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Tuesday, March 19, 2024
March 19, 2024

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Facebook Q2 earnings beat estimates

The Columbian
Published:

MENLO PARK, Calif. — Facebook’s mobile ad business is booming but the company’s expenses and costs are also rising fast.

Bolstered by mobile ad dollars, the social media giant on Wednesday reported earnings from April to June that slightly beat Wall Street’s expectations.

“This was another strong quarter for our community,” said Mark Zuckerberg, Facebook founder and CEO in a statement. “Engagement across our family of apps keeps growing, and we remain focused on improving the quality of our services.”

The company’s sales grew about 39 percent to $4 billion from its second quarter in 2014, which is slightly higher than the $3.9 billion in revenue analysts surveyed by Thomson Reuters predicted Facebook would report. The majority of the company’s ad dollars — about 76 percent — came from mobile ads.

Menlo Park-based Facebook earned $719 million, or 25 cents per share, which was lower than the $791 million the company made during the same period last year.

Analysts estimated that Facebook would earn 24 cents per share or 47 cents per share, excluding certain expenses.

As video views grow on Facebook and the company ramps up advertising on Instagram, analysts expected strong results from the social networking company.

In June, Instagram — a photo-sharing service that Facebook purchased in 2012 for $1 billion — said that it was opening up advertising to all marketers, allowing them to target its 300 million users by age, gender and more. Research firm e-Marketer estimates that Instagram will bring in $595 million in mobile ad revenues worldwide this year.

Facebook’s costs and expenses jumped by about 82 percent in the second-quarter to $2.7 billion.

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