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Facebook Rakes In $4 Billion, Thanks To Our Smartphone Addiction

The social network’s 39% increase in revenue last quarter was largely driven by mobile.

Facebook Rakes In $4 Billion, Thanks To Our Smartphone Addiction
[Photo: David Paul Morris/Bloomberg via Getty Images]
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Facebook held its second-quarter earnings call Wednesday afternoon, and mobile continues to be a huge focus for the social networking giant. For the first time, Facebook broke $4 billion in quarterly revenue. Of that, $3.8 billion came from advertising revenue specifically, with an ever-growing number of those ad impressions and clicks happening on our smartphones.

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The company’s mobile ad revenue was up 73% year over year, according to COO Sheryl Sandberg, who cited the company’s ongoing efforts to “capitalize on the shift to mobile,” as well as ongoing experimentation with ad formats and mechanisms. CFO Dave Wehner called mobile “the engine of our revenue growth,” referring to Facebook’s 39% increase in revenue in the last quarter.

It’s clear that more people are increasingly whiling away time staring into their phones, and Facebook is reaping the benefits. Its user base continues to climb each quarter, but there’s a steep incline when it comes to mobile users: That number hit 655 million last quarter, a 65% increase from the same quarter last year.

The call’s monetization discussion focused heavily on the flagship social network that bears Facebook’s name, though the company also owns Messenger, WhatsApp, and Instagram. While various improvements and user growth trends were reported for those platforms, the company is clearly still figuring out how to maximize on its arsenal of standalone mobile apps. Sandberg cited progress in experimenting with new ad formats on Instagram–such as carousel photo ads–but declined to share any hard numbers.

About the author

John Paul Titlow is a writer at Fast Company focused on music and technology, among other things. Find me here: Twitter: @johnpaul Instagram: @feralcatcolonist

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