Summary:

Facebook came out with strong second quarter earnings on Wednesday, exceeding analyst predictions on both earnings and revenue, and producing strong numbers on mobile as well.

Mark Zuckerberg Facebook announcement

Facebook announced $1.81 billion in revenue Wednesday for the company’s second quarter of 2013, compared to analyst estimates of $1.62 billion in revenue. The company saw first-quarter earnings of $0.19 per share excluding one-time charges, compared to analyst expectations of $0.14 per share.

The second quarter revenue of $1.81 billion compares to revenue of $1.18 billion from the same quarter of 2012, (which was also Facebook’s first as a public company). Specifically:

  • $1.60 billion in advertising revenue, which is 88 percent of its total revenue and 61 percent greater than last year
  • 41 percent, or $656 million, of total advertising revenue came from mobile

In terms of users, Facebook saw important gains on mobile, and growth among overall users as well, which was the big challenge for the company that’s already hit 1 billion users. This quarter the company saw:

  • 819 million monthly active mobile users as of June, which is up 51 percent over last year
  • 699 million daily active users (27 percent higher than last year)
  • 1.15 billion monthly active users (21 percent higher than last year)

The 41 percent of advertising revenue this quarter coming from mobile is an important gain over the past few quarters, and something investors have been looking for. In the first quarter of this year, mobile advertising revenue as a percentage of total ad revenue hit 30 percent, compared to 23 percent in the fourth quarter of 2012 and 14 percent in the third quarter. This is the big question from investors — can Facebook continue to show growth in advertising revenue on mobile, where users are increasingly spending their time.
FB Chart

FB data by YCharts

The company reported $333 million in net income and non-GAAP net income of $488 million, which translated to earnings per share of $0.19. The company’s stock was up 19 percent after-hours, trading at around $31 per share.

This story was continuously updated as more information became available.

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