Facebook reported its second-quarter financial performance. What could boost confidence in the share holders, the social network’s revenue figures released today are an all time quarterly high for the firm.
The revenue for the second quarter of 2013 totaled $1.81 billion, an increase of 53%, compared with $1.18 billion in the second quarter of 2012. Facebook makes a major chunk of revenues from advertising and in this quarter it made $1.60 billion, representing 88% of total revenue and a 61% increase from the same quarter last year.
Facebook has also surpassed 1 million active advertisers on Facebook, driven by significant growth in local businesses.
Payments and other fees revenue was $214 million for the second quarter of 2013, an increase of 11% from the same quarter last year.
Mobile, which has been the biggest concern in terms of making revenue, has some exciting numbers too. The segment represented approximately 41% of advertising revenue for the second quarter of 2013. Facebook Mobile which has 819 million MAUs and 469 million DAUs on an average for June 30, 2013 has seen a spike of 11% from the preceding quarter, when it totaled 30%. Click here to find more about the operational numbers of Facebook for the Q2 2013.
Besides these figures, TC has revealed Facebook numbers about the average revenue per user (ARPU) from different geographies.
Worldwide Facebook earned $1.60 per user, but only $0.63 per user in the “rest of world” geography which is propping up its growth. Rest of World has been Facebook’s focus area for some time and coming quarters could tell a different story. Regions like US & Canada, Europe and Asia have also seen a considerable growth in ARPU when compared Q2 with Q1, 2013.
During the company earnings call, Facebook’s CEO Mark Zuckerberg, who considers the Q2 numbers as a good progress, stated that the mobile revenue will soon leave desktop incomes behind. The company also reaffirmed that it has all intentions to monetize from Instagram which would be largely through advertisements.
However the CEO made it clear that it will do so at the right time. He added further,
“Kevin [Systrom] has always been clear that we’re building Instagram to be a business,” Zuckerberg said. “We expect over time to generate a lot of profit from it. We think the right focus for now is to continue increasing the footprint of Instagram and, when the right time comes, we’ll think about advertising.”
On the call, Mark also made sure that he emphasized on teen engagement which remains quite high.
“We believe we have close to fully penetrated the US teen demographic for a while,” but he also admitted that it’s hard to pinpoint metrics on teens because some people lie about their age.
Age verification has been a concern as it is easy to fool the network about one’s age. India, which is the third most popular country for Facebook after US and Brazil, has questioned its rule of 13 year old kids being allowed on the network. For now the social network has given a temporary solution but it won’t be sufficient.
Nevertheless, Facebook had a steady quarter which saw a growth in numbers, boosting revenues especially from mobile. For the network the quarter ended with $10.3 billion in cash and short-term investments, leaving it very well capitalized.