Facebook has been hot waters ever since it went public. The company’s stock has been steadily declining since the day first, putting a lot of pressure on the social network to make more money. Thankfully for Facebook, its quarterly earnings of the 3rd quarter have managed to best Wall Street estimates.
Wall Street gurus had pegged their estimates at $1.23 billion for Facebook’s third quarter this year. Facebook was able to beat this estimate by a very fine margin as it was able to scoop up $1.26 billion through the quarter, revealed in the quarterly earnings report.
This brings a much-needed relief to Facebook which had been cornered by investors as well as Wall Street analysts since the day it went public. Mark Zuckerberg has tried to steer his company to a greater profitability but the process seems to be slow for the social media giant.
The quarterly report also brought good news for the investors. Rather than Wall Street’s estimates of 10 cents per share earnings, Facebook managed a 12-cent per share earnings through the quarter. The company also revealed a number of significant figures related to its overall user base.
For instance, the report cites that it has been able to reach the milestone of 1.01 billion users by the end of the quarter. Zuckerberg’s mobile strategy seems to be working, at least in the light of the figures that Facebook now has 604 million active mobile users, which is a 61% gain over the past year.
Nonetheless, Facebook still needs to monetize this mobile user base more effectively. While the company has been able to take a smoother transition from desktop to mobile as far as the user base is concerned, its financials are not registering a similar progress.
Image Courtesy: Bloomberg News