Facebook Q1 revenues up 38% to $1.46B, operating profit down; mobile brings 30% of ad revenues

facebook-logoWorld's largest social networking site Facebook saw revenues rise 38 per cent to $1.46 billion in the first quarter ended March 31, 2013, led by 43 per cent growth in advertising revenue over the year-ago period. At $1.25 billion, ads accounted for 85 per cent of the total revenue of which mobile advertising contributed around 30 per cent.

Revenue from payments and other fees amounted to $213 million for the first quarter of 2013.

According to the company, its income from operations dipped 2 per cent to $373 million from $381 million in the first quarter of 2012 and operating margin was 26 per cent for Q1 2013, compared to 36 per cent in Q1 2012. Net income increased 7 per cent to $219 million, primarily due to lower tax outgo.

Facebook also saw expenses rise 60 per cent to $1.08 billion, driven by infrastructure cost and increased headcount. Capital expenditure for the quarter was $327 million – 28 per cent decrease from the first quarter of 2012.

Cash and marketable securities were worth $9.5 billion at the end of the first quarter of 2013.

Instagram, snapped up by Facebook last year, reached 100 million monthly active users (MAU) in the first quarter of 2013. The company launched new advertising products such as Lookalike Audiences, Managed Custom Audiences and Partner Categories, which enable marketers to improve targeting capabilities on Facebook.

User highlights

Facebook's Q1 report also disclosed that its MAU increased 23 per cent to 1.11 billion year over year as of March 31, 2013. Worldwide, the number of daily active users (DAUs) increased 26 per cent to 665 million on an average year over year. Mobile MAUs rose 54 per cent to 751 million.

Closer home, Facebook recently disclosed that its monthly active users (MAUs) in India  had increased 54 per cent to reach 71 million as of December 2012. Given various estimates of internet users in the country and pegged between 100-150 million according to Facebook, the social site has managed to hook over half of the internet users in India.

(Edited by Sanghamitra Mandal)

Facebook Q1
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