The area that had made investors fear the most is the one responsible for Facebook's good quarter: advertising revenue generated on mobile devices. And so the social network has been able to score in the period April-June profits and revenues above analysts' expectations, which is why the stock shot up about 20% in the after-hours yesterday.
Before the release of the company accounts, which arrived yesterday after the closure of Wall Street, Facebook shares had recorded a +1,45% to 26,51 dollars, bringing the IPO balance to -30%. Earnings before special items hit $488 million, or 19 cents per share versus 14 on market estimates. Revenue jumped 53% to $1,18 billion.
The most interesting aspect derives from an analysis of revenues: those produced on mobile devices represented 41% of the total, more than 30% in the previous three months. "One of the things that emerges from this quarter is that the advertising model associated with News Feed is working," said Chief Financial Officer David Ebersman.
