Facebook's Got Mobile Strength
NEW YORK (TheStreet) -- Facebook
As Chief Financial Officer David Ebersman told TheStreet earlier this year, Facebook is now a mobile company. About 30% of total advertising revenue came from mobile, and beat Wall Street expectations for mobile revenue, at $374 million.
For the full quarter, Facebook earned 12 cents a share on revenue of $1.46 billion, an increase of 38% year over year. The Menlo Park, Calif.-based company was expected to earn 13 cents on a non-GAAP basis, with revenue coming in at $1.44 billion, according to analysts surveyed by Thomson Reuters.
Of Facebook's 1.1 billion total daily active users (DAUs), 751 million of them are mobile monthly active users (MAUs). CEO Mark Zuckerberg has said in the past, and again on the conference call, that users check their smartphones 100 times a day, and Facebook is the top app for most smartphones and that's where Facebook Home comes in.
"So with Home, you can see fresh news and content from people and topics you care about every time you turn on your screen," Zuckerberg said on the call. "It really brings your phone to life and provides with a completely new experience."
Shares of Facebook were higher in premarket trading, up 2.37% to $28.08.
As mobile continues to become a bigger part of the company, revenue from this segment is only expected to rise.
"For Q2 2013, we are expecting mobile ad revenues of $448mm (32.5% of advertising revenues), representing 20% growth QoQ, and $931mm of desktop advertising revenues, representing a 1.6% decline YoY," said UBS analyst Eric Sheridan. He rates shares "neutral," and raised his price target to $28 from $26 following the results.
One area of strength is mobile apps, which Zuckerberg highlighted on the call. Traditional app stores from Apple