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Facebook is making millions from keeping people in touch

Revenues and user base get a big poke
Thu Jul 24 2014, 10:18
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PEOPLE CATALOGUE Facebook has reported its second quarter financial results, boasting of increases everywhere.

This is good news for the firm and has drawn a pleased reaction from CEO Mark Zuckerberg. "We had a good second quarter," he said. "Our community has continued to grow, and we see a lot of opportunity ahead as we connect the rest of the world."

As the Facebook community, or user base, grows, so do its revenues. Users, daily and otherwise, increased their traffic to its website, and Facebook said that active daily users in June alone hit 829 million. Daily mobile users came in at 654 million.

Monthly this works out to pokers in the billions. Facebook reported that active monthly use, on its desktop version, was 1.32 billion, while mobile use was 1.07 billion. Facebook said that these represent 14 and 31 percent increases, respectively.

This daily hustle and flow translated to revenues in the second quarter, and very good ones at that. In the three months ending 30 June, revenue increased by 61 percent, and tots up to $3.2bn.

Advertising, which must be a part of the Facebook experience, accounts for a big chunk of this and grew by two-thirds to $2.68bn. Mobile advertising makes up about two-thirds of these results.

GAAP net income was $791m, which represents a high-five inducing increase of 138 percent against the mid-fiving $333m announced in the same quarter last year. Non-GAAP net income for the second quarter of 2014 was $1.09bn, and $488m in 2013.

Facebook said that it paid an "effective tax rate" of 43 percent in the quarter and provided a figure of $595m. µ

 

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