Facebook's Q2 revenues up 61% to $2.91B, mobile brings 62% of ad income; mobile monthly active users at 1.07B

Social networking giant Facebook, Inc. has reported 61 per cent increase in its revenues for the quarter ended June 30, 2014 to $2.91 billion from $1.81 billion in the same period last year. Excluding the impact of foreign exchange rates, revenue increased 59 per cent.

For the second quarter, GAAP net income was $791 million, up 138 per cent from $333 million last year, while the non-GAAP net income surged 124 per cent to $1.09 billion.

The revenue growth in the second quarter is mainly attributed to a 67 per cent increase in ad revenue which stood at $2.68 billion. Mobile ad revenue represented approximately 62 per cent of total ad revenue, up from 41 per cent of in the second quarter of last year. Payments and other fees revenue grew 9 per cent.

For the quarter, GAAP operating margin was 48 per cent, compared to 31 per cent last year. Excluding items, GAAP operating margin was 59 per cent, as against 44 per cent for the second quarter of 2013.

"We've continued to grow our community in size and engagement with 1.32 billion people now connecting on Facebook each month, and 63 per cent of them visiting daily. Our momentum remains especially strong on mobile to now 829 million people using Facebook everyday with more than 650 million people using our services on mobile every day," said Mark Zuckerberg, founder and CEO of Facebook.

User base

As of June 2014, Facebook's daily active users (DAUs) were 829 million, an increase of 19 per cent over the same period last year. Mobile DAUs increased 39 per cent to 654 million. Facebook's Monthly active users (MAUs) were 1.32 billion as of June 30, 2014, which increased 14 per cent year-over-year, while mobile MAUs increased 3 per cent to 1.07 billion.

India is a one of the key markets for Facebook with more than 100 million users. Speaking at an investors call COO Sheryl Sandberg said 80 per cent of these 100 million users are on mobile and a majority of these are using feature phones.

Sandberg, who recently visited India, gave anecdote of one of its clients, Chumbak, a maker of India inspired accessories and lifestyle products. She said Facebook is its leading marketing channel and is responsible for 35 per cent of online revenue and 38 per cent of its web site traffic. "Their Facebook ads deliver a 5x return on advertising spend and has helped company grow to more than 150 employees in three offices," she said.