NEWS
NEWS
NEWS
Facebook posts stellar Q3 despite decrease in mobile DAUs
Facebook posted its third quarter earnings results, which showed that the company beats analysts expectations.
Its revenue for the quarter that ended last September 30, 2013 saw an increase of 60 percent, from $1.26 billion one year ago, to $2.02 billion for this year. The majority of its revenue came from advertising, which saw a 66 percent increase from last year to $1.80 billion. Mobile advertising also saw a 49 percent increase in revenue, and payments and other fees constituted $218 million in revenue for the third quarter of 2013.
“For nearly ten years, Facebook has been on a mission to connect the world,” said Mark Zuckerberg, Facebook founder and CEO. “The strong results we achieved this quarter show that we’re prepared for the next phase of our company, as we work to bring the next five billion people online and into the knowledge economy.”
Costs and expenses also saw an increase of 45 percent to $1.28 billion, which was attributed to infrastructure expenses as well as Facebook’s growing headcount.
Though Facebook posted that its daily active users (DAU) saw a 25 percent year-over-year increase now at 728 million on average for September 2013, in its earning call, Facebook CFO David Ebersman stated that the service saw a decrease in daily users, specifically among younger teens.
“We remain close to fully penetrated among teens in the US,” a statement Eberman should have rephrased. “This is of questionable significance … but we wanted to share this with you now because we get a lot of questions about teens.”
The drop in teen daily active users is attributed to the fact that they are more inclined to use chat apps, such as Snapchat, to communicate with their friends.
Still, everything seems to be looking up for Facebook as it also posted an 18 percent year-over-year increase for its monthly active users (MAU), now 1.19 billion as of September 30, 2013, and even its mobile MAUs were at 874 million, an increase of 45 percent year-over-year. As for its mobile DAUs, it saw an average of 507 million users for September 2013.
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