second-quarter earnings of
Facebook beat analyst expectations, registering a profit of $333 million on
revenue of $1.8 billion, up 53 percent from one year ago. Much of that revenue
growth came from a dramatic increase in sales of mobile advertisements, which
accounted for 41 percent of the company's $1.6 billion in ad revenue in the
second quarter.
Mobile traffic was
up as well, with 819 million users accessing Facebook from a smartphone or
tablet. That represented an increase of 51 percent from the second quarter of 2012.
As mobile grows,
small businesses are steadily buying a larger share of ads, Facebook said. In
the second quarter, Facebook surpassed one million active advertisers on its
platform, many of whom are local businesses. This is no coincidence; Facebook has
reportedly been wooing small-business owners as of late as it seeks to compete
with Foursquare and other companies whose apps help users interact with
businesses in their area.
Facebook's stock
shot up 17 percent in after-hours trading on Wednesday. It has continued to
gain since the market opened Thursday, now trading near $33 a share. While
still shy of the initial $38 share price at its IPO over one year ago,
investors finally have reason to feel good about its prospects.
Source: Entrepreneur
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