Mobile ads raised Facebook’s income in 2015’s 3rd quarter

06/11/2015 Sandi

Facebook has shown tremendous revenue records as of the 3rd quarter of 2015 owing to the increased use of advertising by business and individuals on the social app.

According to Statista, Facebook’s revenue grew 41% to $4.5 billion and its net income by 11% to reach $896 million. Mobile ad revenue now makes up 78% of Facebook’s advertising revenue and 74% of its total revenue:


	GAAP		Year-over- Year % Change
	Three Months Ended September 30,
In millions, except percentages and per share amounts	2015	2014
Revenue:
Advertising⁽¹⁾	$ 4,299	$ 2,957	45%
Payments and other fees	202	246	(18)%
Total revenue⁽²⁾	4,501	3,203	41%
Total costs and expenses	3,042	1,806	68%
Income from operations	$ 1,459	$ 1,397	4%
Operating margin	32%	44%
Provision for income taxes	536
Effective tax rate	37%
Net income	$ 896	$ 806	11%
Diluted EPS	$ 0.31	$ 0.30	3%

Statista also reports that in all the 11 quarters since in-app advertising was introduced in the Facebook, up to 90% of Facebook’s income was generated from mobile ads. For 2015, this growth has been the most successful on smartphones and tablets compared to desktops.

This comes at no surprise, as Facebook users per day reach over 800 million. These are its operational highlights for 2015 released on its website:

Daily active users (DAUs) – DAUs were 1.01 billion on average for September 2015, an increase of 17% year-over-year.
Mobile DAUs – Mobile DAUs were 894 million on average for September 2015, an increase of 27% year-over-year.
Monthly active users (MAUs) – MAUs were 1.55 billion as of September 30, 2015, an increase of 14% year-over-year.
Mobile MAUs – Mobile MAUs were 1.39 billion as of September 30, 2015, an increase of 23% year-over-year.

This should teach app developers that once you can get over a billion users for your app, you can get a lot more back in revenue.

What are you waiting for? Get creating!