Throughout this week, many major public companies have reported their fourth quarter 2013 earnings, and Facebook just so happens to be one of them. Facebook 4Q earnings have been well received by Wall Street, as the company’s revenue beat analysts expectations, resulting in a sharp spike in stock price during after hours trading. Facebook also revealed that 53 percent of its revenue now stems from mobile advertising, calming down the Street which was skeptical about the shift from desktop to mobile after the company’s IPO.
Facebook brought in $2.59 billion in revenue while analysts were expecting it post $2.33 billion, the former translates to earnings of 31 cents per share against predictions of 27 cents a share. When compared to the year-ago quarter, its a significant bump, as back then revenue came in at $1.59 billion with earnings of 17 cents a share. The company also reported user statistics, daily active users have surged 22 percent to 757 million, whereas monthly mobile users are inching towards the one billion mark, currently sitting at a tad over 945 million. In 2013, Facebook brought in a total of $7.87 billion in revenue, a 55 percent year-over-year increase. All eyes are now affixed on the current quarter, investors will definitely be curious to see if the company is able to maintain this momentum. Apart from announcing its quarterly results, Facebook also announced a new product called Paper, a Flipboard like app that’s currently only available for iOS devices.