Strong mobile ads help Facebook revenue soar 61 per cent

The news saw shares in the company reach a new high

Facebook revenue rose 61 per cent in its latest quarter, helped by a strong performance from its mobile advertising business, the company said late today.

After the earnings news, Facebook’s shares touched a new high in after-hours trading in New York.

“We’re seeing our existing advertisers spend more and we’re seeing new people come on to the platform,” said Facebook chief operating officer Sheryl Sandberg.

Quarterly revenue jumped to $2.91 billion in the three months ended June 30, up from $1.81 billion in the same quarter a year ago. On average, analysts were expecting $2.81 billion.

Facebook’s closely-watched mobile advertising revenue made up 62 per cent of all advertising revenue, up from 41 per cent in the same quarter of 2013.

Revenue from all advertising was $2.68 billion, a 67 per cent increase from the same quarter last year.

“We had a good second quarter,” said Mark Zuckerberg, Facebook chief executive. “Our community has continued to grow, and we see a lot of opportunity ahead as we connect the rest of the world.”

Facebook reported $791 million in net income for the quarter, up from $333 million in the same quarter of 2013.

Investors pay close attention to Facebook’s “active users” numbers, and these were mostly strong in the latest reporting period.

Daily active users were 829 million on average for June, up 19 per cent year-over-year. Mobile daily active users were 654 million for June, an increase of 39 per cent year-over-year.

Monthly active users were 1.32 billion as of June 30, an increase of 14 per cent. Mobile monthly active users were 1.07 billion as of June 30, up 31 per cent.

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