Holy Mobile! Facebook Q2 Earnings Beat Analyst Predictions
Nearly 90 percent of Facebook’s ad revenue comes from mobile advertising.
As the kids say, Facebook is crushing.
The company has just announced its Q2 earnings, reporting a quarterly profit of $9.32 billion. Nearly 90 percent of Facebook’s revenue came from mobile advertising, and recent news of advertising tests within Messenger indicate that Facebook is keeping its foot on the gas with respect to mobile.
The blazing business momentum creates an interesting juxtaposition to Facebook’s revamped, feel-good mission statement and Mark Zuckerberg’s Simon-and-Garfunkel-esque quest to discover the heart of America. On the financial side of the table, Facebook is absolutely dominating the mobile advertising space and experts predict the company will own 40 percent of the total display market by 2018.
Mobile video is of specific interest to Facebook, as eMarketer predicts digital video spend to increase by 19 percent this year. At SMWLA, Facebook’s Carolyn Coyne coached marketers on how to keep up with the “speed of the feed” and offered best practices for creating what she called “thumb-stopping content.” In her talk, she shared that 75 percent of all content consumption on Facebook occurs on mobile.
So, how impressive are these numbers? CNBC puts things into perspective for us: Facebook’s Q217 revenue growth rate was twice that of Alphabet. Facebook’s YoY growth rate this quarter is a staggering 45 percent, whereas Alphabet’s was “just” 19 percent.
The impressive performance of the so-called FANG stocks (Facebook, Amazon, Netflix, and Google) has some analysts fearing a bubble while others are convinced there is no end in sight. Together, the tech giants make up 13 percent of the S&P 500 and have added $600 billion in market cap this year alone.
Cover photo via CNN
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