Business

Facebook grows profit on new apps, ads

Facebook surpassed expectations on all fronts in the second quarter, growing not just profit and revenue but its already massive user base, mobile advertising and usage of its "family" of non-Facebook apps like Instagram and WhatsApp.

Strength in mobile advertising and subscribers helps social network grow

Facebook has 1.3 billion monthly mobile users. (Associated Press)

Facebook surpassed expectations on all fronts in the second quarter, growing not just profit and revenue but its already massive user base, mobile advertising and usage of its "family" of non-Facebook apps like Instagram and WhatsApp.

Even so, its stock price fell after the results came out, as some investors may have been looking for even better results, or they may be simply cashing in on some profits as Facebook's shares have been trading near record highs. Spending also soared in the April-June period, as Facebook had promised it would.

The world's largest online social network said Wednesday that it had 1.31 billion people monthly mobile users as of June 30, up 23 per cent from a year earlier. It reached 1.49 billion monthly users, up 13 per cent from a year earlier. Facebook also had 968 million daily active users overall and 844 million on mobile devices.

"Once again Facebook has proven its ability to attract and retain users. It's particularly impressive that users are more engaged than ever before — that the percentage of monthly users who visit every day continues to grow," said Forrester Research analyst Nate Elliott.

That's in contrast to Twitter, which continues to worry investors with stalling user growth.

Facebook's mobile advertising represented 76 per cent of the total advertising revenue during the April-June period, proof that the company continues to attract advertisers to where its users are — on smartphones and other hand-held gadgets. That's up from 62 per cent a year earlier.

Comments

To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.

Become a CBC Member

Join the conversation  Create account

Already have an account?

now