Facebook announces 72% jump in revenue and the departure of its chief financial officer
Wednesday 23 April 2014
Facebook said late on Wednesday that continued growth in its mobile advertising business helped its first quarter revenue grow 72 per cent to $2.5 billion, beating analysts’ estimates.
The social networking company also said that David Ebersman will step down as its chief financial officer after almost five years.
Facebook said quarterly revenue from advertising jumped 82 per cent to $2.27 billion, and that mobile advertising revenue made up 59 per cent of that total, up from 30 per cent in the first quarter of 2013.
“Facebook's business is strong and growing, and this quarter was a great start to 2014,” said Mark Zuckerberg, the company's founder and chief executive. Facebook shares rose in after-hours trading.
Facebook recently agreed to buy mobile messaging service WhatsApp for roughly $19 billion and also virtual reality company Oculus VR for about $2 billion.
“We've made some long term bets on the future while staying focused on executing and improving our core products and business,” said Zuckerberg.
Facebook said Ebersman will be succeeded on 1 June by David Wehner, currently Facebook's vice president of corporate finance and business planning, but Ebersman will stay at Facebook though September to ensure a smooth transition.
The social network firm said its number of monthly active users reached 1.28 billion on 31 March and that just over 1 billion of those users got access to Facebook on mobile devices such as tablets and smartphones.
The company said it earned $642 million in net income, or 25 cents a share, up from $219 million, or 9 cents a share in the same quarter a year ago. Excluding certain items, Facebook earned 34 cents a share in the first quarter, beating analysts’ estimates of 24 cents.
Nonetheless, the pending departure of Ebersman surprised some investors.
“Any time you see a CFO, a fairly major person in terms of a company and obviously one that's only been public a couple of years now, change up and now have a necessarily designated successor already in place, it does raise questions as to what's actually going on with the numbers,” David Garrity, principal at GVA Research, said on CNBC.
- 1 Expert urges cat lovers to own just one animal each
- 2 Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
- 3 The Simpsons death: Creator Al Jean would 'kill himself' before character like Homer or Lisa
- 4 British man raped while urinating in bushes at Oktoberfest beer festival in Germany
- 5 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
Expert urges cat lovers to own just one animal each
Five-year-old Iris Grace is raising awareness of autism through her extraordinary paintings
Isis an hour away from Baghdad - with no sign of Iraq army being able to make a successful counter-attack
Car tax disc changes: Two days to go - and they affect you much more than just not displaying a piece of paper
British man raped while urinating in bushes at Oktoberfest beer festival in Germany
Isis, we are told, is a 'clear and dangerous threat to our way of life'. I’m sorry, but I just don’t buy it
Exclusive: 'Putin's Russia has been my biggest regret,' says Nato's outgoing Secretary General
'Women, walk wherever you want' posters taken down in Stamford Hill following 'unacceptable' signs separating men and women
There’s no excuse for Dave Lee Travis’s behaviour, but we need to keep a sense of proportion
Mark Reckless becomes second Tory MP to defect to Ukip in a month
Should gay sex be illegal? 16% of Britons think so
- < Previous
- Next >
iJobs Money & Business
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...
£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...
Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...