3rd December 2020

Mobile ads raised Facebook’s income in 2015’s 3rd quarter

chartoftheday_2496_facebook_revenue_by_segment_n

Facebook has shown tremendous revenue records as of the 3rd quarter of 2015 owing to the increased use of advertising by business and individuals on the social app.

According to StatistaFacebook’s revenue grew 41% to $4.5 billion and its net income by 11% to reach $896 million.  Mobile ad revenue now  makes up 78% of Facebook’s advertising revenue and 74% of its total revenue:

GAAP

Year-over-
Year %
Change

Three Months Ended September 30,

In millions, except percentages and per share amounts

2015

2014

Revenue:

   Advertising(1)

$ 4,299

$ 2,957

45%

   Payments and other fees

202

246

(18)%

Total revenue(2)

4,501

3,203

41%

Total costs and expenses

3,042

1,806

68%

Income from operations

$ 1,459

$ 1,397

4%

Operating margin

32%

44%

Provision for income taxes

536

Effective tax rate

37%

Net income

$    896

$    806

11%

Diluted EPS

$   0.31

$   0.30

3%

Statista also reports that in all the 11 quarters since in-app advertising was introduced in the Facebook, up to 90% of Facebook’s income was generated from mobile ads. For 2015, this growth has been the most successful on smartphones and tablets compared to desktops.

This comes at no surprise,  as Facebook users per day reach over 800 million. These are its operational highlights for 2015 released on its website:

Daily active users (DAUs) – DAUs were 1.01 billion on average for September 2015, an increase of 17% year-over-year.
Mobile DAUs – Mobile DAUs were 894 million on average for September 2015, an increase of 27% year-over-year.
Monthly active users (MAUs) – MAUs were 1.55 billion as of September 30, 2015, an increase of 14% year-over-year.
Mobile MAUs – Mobile MAUs were 1.39 billion as of September 30, 2015, an increase of 23% year-over-year.

This should teach app developers that once you can get over a billion users for your app, you can get a lot more back in revenue.

What are you waiting for?  Get creating!

Sandi

Tech blogger. Gadget junkie. Life lover. I love eyeliner. Miller runs through my veins.

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