Facebook Inc, a leading social networking giant has posted a revenue growth of 32 percent to clock $1.26 Billion in the third quarter of this year. As per the sources, this impressive revenue growth was made possible with their re-energised advertisement campaigns especially through the mobile channel.
The shares of Facebook soared 19 percent to $23.23 which is the largest ever single day gain for the company on Tuesday. Industry analysts predict Facebook’s attitude makeover has played a major role in boosting its shares in Wall Street.
Mark Zuckerberg, Facebook CEO recently spoke at length about company’s potential to turn around its mobile business and this seems to have contributed to raising the positive sentiment in the market. Out of the total revenue figures in the third quarter, $1.09 Billion was gained from advertising which saw an increase of 36 percent on an annual basis. However revenues from its payment and other businesses lines contributed hardly around $176 Million which is only about 13 percent of the total revenues gained in the third quarter.
Mobile revenues contributed almost 14 percent of the revenues gained from advertising. Arvind Bhatia, Agee & Leach analyst expressed surprise over Facebook’s revenues disclosure that revenue from mobile advertisement went beyond their expectations. Though they were expecting only $40 to $50 Million from mobile advertising, but Facebook clocked an impressive 14 percent which is almost $140 Million.
Facebook however reported a net loss of $59 million equivalent to 2 cents a share for the three months that ended on September 30. In 2011, Facebook reported a profit of $227 million which is equivalent to 10 shares a year. Facebook has made a comeback this quarter compared to the slowdown in the second quarter with the third quarter revenue surpassing the expected figure of $1.23 billion which was forecasted by Thomson Reuters. It is only few days back that Facebook surpassed the figure of 1 billion users ever since the service was launched in 2004.