Facebook sales reach $3.2 billion in this quarter.
Facebook reported its third quarter results on Tuesday, which went up by 90%. Facebook reported sales of $3.2 billion for its third quarter, which surpasses the $3.1 billion expectation of the analysts. This is an increase of 59% compared with $2.02 billion in the third quarter of 2013. 58% would have been the increase anyway because of the year-over-year change in foreign exchange rates.
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Revenue from advertising saw an increase of 64% from the same quarter last year and amounted to $2.96 billion this quarter. Mobile advertising contributed the largest chunk to the advertising revenue, as it represents 66% of the total advertising revenue.
Costs and expenses amounted to $1.81 billion, an increase of 41% from the third quarter of 2013. Income from operations also saw an upward development in this quarter of 2014 compared to 2013’s. Income reached $1.40 billion an increase of 90% compared to $736 million in the third quarter of 2013.
Net income for the quarter experienced a rise of 90%, from $425 million in 2013 to $806 million in 2014. As the revenues and incomes increased so did the income tax. The income tax expense for this quarter was $530 million, representing a 40% effective tax rate.
Along with this Facebook also filed a financial report claiming that Whatsapp generated $10.2 million in revenue in 2013 and an operating loss of $138.5 million. It has also been expected that Facebook would capture 8% of the $140.7 billion global ad market this year.
Previously Facebook had a share of 5.8% in the global ad market. Moreover its mobile ad market could reach 20%, up from 17% last year. Facebook shares plunged as low as $71.65 in extending trading and closed at $80.77 in New York yesterday. The stock has gained 48% this year to Facebook’s relief which helped to push the company’s market capitalization past $209 billion.
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Facebook stands at a better position than other Internet companies such as ‘Google Inc.’ which experienced a 20% sales increase for the third quarter, missing analysts’ estimates.