Dallas, Texas 07/24/2014 (FINANCIALSTRENDS) – Facebook Inc (NASDAQ:FB) has definitely reached new highs, riding on the mobile ads conversion. The shares of this social media network were found to increase by over 5%, following the reportage of earnings in the second quarter of 2014.
The company reported revenues to the tune of $2.91 billion and EPS of $0.42. This was definitely much higher than the previous year’s revenue of $1.8 billion and EPS of $0.19. The results were well past analyst estimates which expected FB would report $2.8 billion and EPS in the range of $0.32.
Facebook Inc (NASDAQ:FB) CEO Mark Zuckerberg commented on the results thus, “We had a good second quarter. Our community has continued to grow, and we see a lot of opportunity ahead as we connect the rest of the world.”
Much of the earnings in the second quarter were realized because of the growth in a new segment the company has been targeting in the recent past quarters – Ad sales on Mobiles.
The earnings were driven by digital ads, with the mobile advertising business reporting “over 151 percent year-over-year.” It currently composes 62% of the company revenues on the advertising front.
Facebook Inc (NASDAQ:FB) has been able to see these numbers for higher focus on this segment. According to Keith Bliss, director of sales and marketing at Cuttone & Co., Inc. , that “the big thing with Facebook is all about how are they acquiring new users onto the platform and how are they retaining new users.”
While mobile advertising was one of the slowest growth factors for this company; it has to be noted that the just concluded Football world cup too contributed indirectly to the surge. As football fans engaged more actively during the month-long duration of the famous World Cup, Facebook saw monetized earnings opportunity.