Facebook’s 2014 second quarter earnings show a healthy company continuing to grow at a surprisingly rapid rate for its size.
The company beat analyst expectations for earnings per share by a landslide — $0.42 compared to the expected $0.32. But perhaps the most significant numbers are Facebook’s user engagement stats. The company’s daily active users averaged 829 million for the second quarter. That’s almost 20 percent higher than the same period last year.
It shows that Facebook’s newsfeed algorithm shift is working to its advantage. Although Facebook’s earliest adopters — like me — may be frustrated with the fact that more articles appear in the newsfeed then updates from friends, it seems like the bulk of Facebook users don’t mind the change; They’re visiting the site more frequently than ever.
It’s also worth noting that the ten-year-old site’s monthly active users are 1.32 billion. With 829 million daily active users, that means that 63 percent of Facebook’s active users are on the site every day. Not too shabby. Somewhere in the Twitter building Dick Costolo is probably nursing a green-eyed monster.
The other stat that leapt from the earnings page was the advertising revenue, $2.68 billion — a whopping 67 percent higher than the same quarter last year.
The chunk of Facebook’s advertising revenue that came from mobile this quarter was significant, clocking in at 62 percent. That’s a fair amount, especially given that fact that it wasn’t that long ago that Facebook passed the 50 percent mark of its revenue coming from mobile ads – the fourth quarter of 2014.
On the earnings call, the Facebook executives didn’t offer a definitive explanation for the huge growth in advertising revenue. Instead, they explained the extensive range of steps they’ve taken to work with marketers of all shapes and sizes, from forming the company’s first European SMB council to hosting workshops in American cities to teach small businesses how to market on Facebook.
“One of the things that’s happened in the last year, year and a half, is people understanding the opportunity…to do great creative storytelling on Facebook,” COO Sheryl Sandberg said. She pointed out that the current advertising climate is benefiting the company – advertising dollars are shifting online and coming onto mobile, and Facebook is in a good position to capitalize on it.
Facebook doesn’t think that growth will slow anytime soon, since it has just started to roll out advertising on Instagram and will be implementing autoplay video ads on Facebook in the future.