Zuckerberg celebrated the 10th anniversary of founding Facebook’s by returning second-quarter earnings far above the market’s expectations.
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Mark Zuckerberg /Getty
Mark Zuckerberg saw his personal fortune increase by 20% overnight, reaching an estimated $24 billion as shares in Facebook shot up on news of second-quarter earnings and revenue that made fools of the slightly pessimistic forecasts that had been flying around in the last few days.
According to industry analysts, once again the dramatic rise in income and profits has been driven by the social media giants growing mobile ad business, who reported income for the quarter of $1.81 billion in mobile ads alone, up more than 50% from the $1.18 billion in return for the same quarter in the last financial year.
Facebook’s rapid growth in the last 12 months, and especially in the last two quarters, has been remarkable by any standards, largely driven by the success in conquering the mobile advertising market, which now accounts for 53% of total advertising revenue, and almost non-existent when Facebook went public in May 2012.
Total Facebook revenue for the quarter shot up by 63% to $2.59 billion, way above the expected revenue for the quarter of $2.33 billion. Thanks to such encouraging news, shares in Facebook rose dramatically in after-hours trading and were reported to be very close to passing the $60 per share barrier.
Analysts expect Facebook to announce adjusted earnings of 27 cents a share, up from 17 cents from the same period a year ago.
When news of the unexpectedly positive results, Facebook CFO David Ebersman explained that the investments that the company has made over the past year are beginning to pay off in a big way and will continue to position the company to thrive in the mobile world.
Mobile monthly active users on Facebook is just over 800 million at the end of the quarter, up around 250 million from the same quarter last year, while overall monthly active users averaged 1.15 billion as of the end of the quarter.