Facebook announced that it is taking down several apps and closing its Creative Labs division. (Photo : Reuters)
Half of the 3 billion people in the world who use the internet, or 1.49 billion, check their Facebook accounts at least once a month. The growth in members who check the post monthly, at 13 percent, contributed as well to the 39 percent jump in Facebook's revenue.
The impressive numbers explain why Facebook is the most popular social media site in the world and spells good news for FB shareholders. News of the Q2 revenue reaching $4.04 billion would likely further boost the current shareprice of $97 which is a 24 percent growth since January, reports BBC.
Over 75 percent of the revenue came from mobile advertising, confirming the shift in how people access the internet as more people, like those in the U.S., use their smartphones instead of computers to open their social media accounts. About 844 million people check their Facebook daily using smartphones.
Among the big brands that advertised in FB in Q2 were Procter & Gamble and Under Armour, reports Forbes. Explaining the shift in advertising income from TV to social media, David Hewitt, vice president and mobile lead at SapientNitro, a digital agency, says, "We see Facebook at a core pivot point ... It's now a safe bet to put a lot of money into."
Ironically, CEO Mark Zuckerberg's Q2 results report of a strong quarter still saw Facebook's stock price go down by more than 3 percent in after-hours trading. Analysts explain it to high expectations because the company often surpasses forecasts, although there were also some concerns on the firm's expenses.
Facebook's costs zoomed 82 percent to $2.8 billion which Zuckerberg explained to ongoing investments and improvements, particularly a new data center in Texas that aims to reduce crashes. In April, Facebook said it expects expenses to go up to 65 percent as it hires more workers and improve products such as WhatsApp, a messaging service, and Instagram, a photo-sharing app.
