Home Business NewsTech News Facebook reports record profits but shares drop as teens sign out

Facebook reports record profits but shares drop as teens sign out

by LLB Editor
31st Oct 13 9:59 am

The world’s largest social network, Facebook, has reported a 60% increase in revenue, to $2.02bn (£1.26bn), in the third quarter.

The company reported record profits of $425m for the quarter as Facebook’s monthly active users hit 1.19 billion in September.

Facebook attributed its stellar performance to mobile revenues, which stood at around $880m this quarter compared to just $150m a year earlier.

The social network saw a 45% growth in mobile users over the past year, reaching 874 million mobile monthly active users as of 30 September 2013. These users generated 49% of Facebook advertising revenue for the quarter.

“The strong results we achieved this quarter show that we’re prepared for the next phase of our company,” said Mark Zuckerberg in a statement.

Facebook’s third Quarter 2013 Operational Highlights

Daily active users (DAUs) were 728 million on average for September 2013, an increase of 25% year-over-year.

Monthly active users (MAUs) were 1.19 billion as of September 30, 2013, an increase of 18% year-over-year.

Mobile MAUs were 874 million as of September 30, 2013, an increase of 45% year-over-year. Mobile DAUs were 507 million on average for September 2013.

After the announcement, the company’s stock soared by 18% to $57.98 (£36.16) in after-hours trading.

However, Facebook saw $18bn (£11.2bn) wiped off its share price after a finance chief David Ebersman said the social network had seen a drop in teenage users.

Shares dropped to $48.44 (£30.20), slightly below the day’s closing price of $49.01 (£30.56).

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