Facebook is looking more than ever like the mobile company CEO Mark Zuckerberg declared it had become last year. The social network's
mobile business rose to 30% of its advertising sales in the first quarter from almost nothing a year ago.
That gain helped fuel a 39% rise in Facebook’s overall revenue to $1.45 billion.
The company posted adjusted net income of $312 million or 12 cents a share compared to $287 million, or 12 cents per share, a year ago.
Wall Street analysts surveyed by Thomson Reuters, on average, had expected Facebook to post earnings of 13 cents a share on revenue of $1.44 billion.
"We've made a lot of progress in the
first few months of the year," said Zuckerberg, in the earnings announcement on Thursday. "We have seen strong growth and
engagement across our community and launched several exciting products."
Facebook's advertising revenue rose 43% in the quarter from the year-earlier period, and represented 85% of the
company's total sales. The $375 million in mobile ad revenue was nearly a third of that total -- up from $306 million, or 23%, in the fourth quarter of 2012.
This reflects Facebook’s
push since last year to ramp up mobile advertising, mainly by introducing Sponsored Stories and other ads to the news feed on devices. Its ad business has benefited from extending ads to both the
desktop and mobile news feed. These units generate higher engagement and higher pricing than ads that run on the right-hand column of desktop pages.
Ads running in the news feed on the desktop
carried CPMs of over $4.41 in the first quarter, for example, compared to 22 cents for those on the right side of pages, according to data released by Facebook ad partner Spruce Media this week. While
CPMs dipped in the quarter, the increased frequency of volume of ads in the news feed translated into increasing ad sales overall.
Facebook CFO David Ebersman said during the earnings
conference call that total impressions were up 39% in the quarter, with the average price per ad up 3%.
On the mobile side, Facebook has also rolled out other formats, including app install
ads that help developers promote their wares by allowing users to download apps directly from within the ads. In the quarter, 3,800 developers used the ads to drive nearly 25 million downloads,
and 40% of the 100 top-grossing iOS and Android apps were using app install ads.
eMarketer projects Facebook's share of the U.S. mobile ad revenue will rise to 13.2% this year, from 9.5% in
The company signaled its broader mobile ambitions during the quarter with its launch of Facebook Home, a launcher app for Android phones that replaces the usual home screen with a
Zuckerberg said the company has not really promoted Home since its launch last month, but plans to push the product out more broadly in the next few
Initial reports in April indicated the app had gotten off to a slow start, drawing some 500,000 downloads via Google Play amid mixed reviews and questions about how much appeal Home
has beyond the most avid Facebook users.
Why Facebook is focusing so keenly on mobile is no mystery. Facebook said its number of monthly active mobile users hit 751 million as of the end
of March, up 54% from a year ago, and up 10% from 680 million in the fourth quarter. Monthly active users on Facebook overall reached 1.1 billion, up 23% from a year ago, while daily active users rose
26% to 665 million in the quarter.