Facebook Mobile Revenue Grows Faster Than Expected
Facebook Inc grew mobile advertising revenue several times in the third quarter, a faster-than expected pace that helped reassure investors that the world’s No. 1 social network is beginning to figure out how to earn money off smartphone and tablet users.
The company now gets 14 percent of its advertising revenue from mobile ads, translating into more than $150 million — a surge from an estimated $40 million to $50 million in the second quarter and almost nothing in the first.
Mark Zuckerberg, the 28-year-old chief executive who created Facebook in his Harvard dorm room, said mobile was the “most misunderstood aspect” of the company.
“I want to dispel this myth that Facebook can’t make money on mobile,” he told analysts on a conference call.
Mobile advertising has been among the key investor concerns hanging over Facebook, helping slash more than $40 billion off its market value since its May IPO. As its users increasingly access the social network with their smartphones, Facebook has struggled to transition its business to mobile devices.
“They beat on the top line. They are talking about 60 percent of users on mobile. They are monetizing this OK,” said Wedbush Securities analyst Michael Pachter.