updated 04:56 pm EDT, Wed October 30, 2013
Large growth in monthly active users on mobile boosts bottom line
Facebook today reported financial results for the third quarter, which ended September 30. Revenue for the quarter totaled $2.02 billion, an increase of 60 percent compared with $1.26 billion in the third quarter of 2012. Daily active users rose to 728 million on average for September 2013, an increase of 25 percent year-over-year. Net income was $425 million, compared to a net loss of $59 million for the third quarter of 2012.
"For nearly ten years, Facebook has been on a mission to connect the world," said Mark Zuckerberg, Facebook founder and CEO. "The strong results we achieved this quarter show that we're prepared for the next phase of our company, as we work to bring the next five billion people online and into the knowledge economy."
The shift to mobile advertising clearly has assisted the bottom line, with mobile monthly average users climbing 45 percent year-over-year to 874 million. Mobile advertising revenue represented approximately 49 percent of advertising revenue for the third
quarter of 2013.
Costs and expenses for the quarter were $1.28 billion, an increase of 45 percent, driven primarily by infrastructure expense and increased headcount. Excluding share-based compensation and related payroll tax expenses, costs and expenses were $1.03 billion in the third quarter of 2013, up 40 percent compared to $737 million for the third quarter of 2012. Capital expenditures for the third quarter of 2013 were $284 million, with the company holding $9.33 billion in cash and marketable securities.