I have to admit to surprise when I read Facebook’s Q2 results. Every bit of information I receive and the views of those I speak to, would point to interest in the world’s leading social networking site waning. But Q2 results were so far ‘North’ of analyst expectations, that Facebook shares rose over 20% in after hours trading. Indeed at $31.80, they are getting close to that May 2012 $38 IPO price again.
Revenues rose 53% yoy to $1.81b and profits were up 65% at $488m. The all important mobile bit also fared very well. Indeed mobile now represents 41% of Facebook’s revenues – up from 30% in Q1. Whether we like it or not, Facebook ads now represent 5% of our Facebook feeds. You really do notice them now. I just wish they would stop targeting me with funeral services and stairlifts. But looks like most users accept them as part of using the service. Crucially, this method seems to work just as well on mobile. If you can crack mobile advertising, you certainly have made a major breakthrough.
Mark Zuckerberg addressed the very point we have been making – that teenagers are moving away from Facebook. He accepted ‘saturation’ for US teens but said there was no evidence of desertion. Indeed 700m now use Facebook daily – up from 665m in Q1. BTW – 469m of those daily users do so on their mobiles.
So, let me both admit surprise and offer a genuine congratulation. These are fine results. Well done Facebook.