developing countries

Facebook’s Q2 Earnings — Huge EPS Beat, Stock Up 15% After Massive Increase In Mobile Ads (FB)

Source: http://www.businessinsider.com/facebook-earnings-for-q2-2013-2013-7

mark zuckerberg on phone 2

Facebook has blown away expectations on both topline revenues and bottom line earnings per share.

The beat came on a massive increase in mobile advertising, which was ~$656 million in Q2, up from $375 million in Q1.

EPS: 19 cents (expectation was 14 cents).

Total Revenue: $1.81 billion (expectations were $1.62 billion).

Refresh this post for updates by clicking here.

The stock took a big leap after the numbers came out, up 15% in seconds. FB has been trading around $26.30 all day. It’s now above $30 for the first time in weeks.

While we’re waiting for the call to begin, here are the highlights from the press release:

The revenue gain came after Facebook for the first time signed up 1 million-plus active advertisers. Ad revenue was $1.6 billion. Mobile ad revenue is now 41% of Facebook’s ad revenue.

Facebook for Every Phone passed 100 million users. FEP is Facebook’s feature phone app, which is popular in developing countries. There are also now 100,000 Facebook apps available for users.

User numbers:

  • Daily Active Users: 699 million, up 27%.
  • Monthly Active Users: 1.15 billion, up 21%.
  • Mobile MAUs: 819 million, up 51%.

Here’s a snapshot of the top and bottom lines:

Facebook Q2 2013

Facebook will host its Q2 2013 earnings call in the next few minutes and we’ll be providing live coverage right here.

Here’s the context to the call: Facebook appears to have delayed its introduction of video ads, and the report that some agencies reduced their adspend on the platform turned out to be a red herring, as we suggested.

Disclosure: The author owns Facebook stock.

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Wednesday, July 24th, 2013 digital No Comments

The Scariest Thing About Google’s Earnings (GOOG)

Source: http://www.businessinsider.com/chart-of-the-day-google-cost-per-click-change-2012-4

On Google’s earnings call yesterday, some analysts honed in on a particular trend: declining cost-per-click rates, or CPCs.

Google’s ad revenue is determined largely by two factors: the number of clicks on ads (“paid clicks”) and how much advertisers pay for each click (“CPC”). The first number has been rising fast — it was up 39% in Q1 of 2012, compared with the previous year.

But the second number has started to decline, and was down for the second consecutive quarter (as compared with a year ago).

Google said that the factors driving CPC are very complicated, and include foreign exchange rates, rising mobile usage of Google (where advertisers pay lower prices per click), faster growth in developing countries (where prices are lower), and changes in ad quality all have an effect.

Most analysts seem to agree that CPCs, taken in isolation, are not the best measure of Google’s business. But if you’re looking for a reason why the stock went down today, other than the new class of stock the company announced, this might be it.

chart of the day, google cost-per-click change, april 2012

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Friday, April 13th, 2012 news No Comments

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.

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