When Facebook’s IPO hit the market, many were excited, but many were also skeptical. It almost seemed as if Facebook had a great run but that as a company and stock offering, it might start fizzling out. After all, it seemed like Facebook had reached its height as far as popularity once the IPO was finally out there.
In addition, they beat the earnings per share prediction by 10 cents. Facebook’s stock went up almost 4%, and closed at $71.29. Shareholders were very pleased by Facebook’s announcement. This was a dramatic revenue increase for Facebook. The numbers are 63% higher than what they reported this time last year. Here’s how Facebook made that money.
For 2014 Q2, Facebook posted a whopping 2.9 billion dollar revenue compared to an expected 2.81 billion. It was a substantial number as well as beating the expectations of analysts. Facebook also beat the expected earnings per share with $0.42 per share compared to analysts’ projections of $0.32. That is a big deal.
When commenting on the report, Facebook founder Mark Zuckerberg seemed pleased about the company’s growth. He expressed interest in the opportunities the company had ahead of them, particularly global opportunities. Financial growth wasn’t the only kind of growth that Facebook experienced. They also saw a dramatic increase in their user base. The company claims to have 1.3 billion active users, which is a 14% increase from last year.
Mobile usage is also on the rise. In fact, a whopping 399 million of Facebook users access Facebook on their phones exclusively. 1.07 billion users log on with their mobile devices at least once monthly. This information should make it easier for Facebook to increase their mobile advertising revenue even more. Right now, Facebook appears to be unstoppable. It will be interesting to see how the company continues its growth in the future.
FaceBook has established itself as a big name in the industry. This has led it to becoming one of the fastest growing entities in the world and this includes some of the biggest brands out there. FaceBook is a legitimate winner these days and they are growing rapidly. They can do no wrong at the moment as the profit margins are rising. They are beating expectations and continue to over deliver on their results as time goes by. It is impressive to note the growth and development of the company as it has gotten bigger and bigger.
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