Facebook’s revenues booming, but so are expenses
Facebook Inc.’s revenues grew 49 percent in the fourth quarter, as mobile advertising growth helped the operator of the world’s largest Internet social network beat Wall Street’s targets for earnings and sales, Reuters reported.
However, the company’s revenue growth was the weakest since the start of 2013, and spending rose faster. Facebook shares fell about 2.6 percent in after-hours trading after vacillating above and below the closing price.
Mobile ads for smartphone and tablets have fueled Facebook’s growth, outpacing other Internet companies such as Google Inc. and Yahoo Inc. that have struggled as advertisers increasingly shift to mobile devices from personal computers.
“They are taking share of advertising dollars online. They are taking share of overall advertising budgets,” said Ronald Josey, a JMP Securities analyst, noting the strong quarter.
Facebook said on Wednesday it ended 2014 with 1.39 billion monthly users, with 86 percent of them accessing its service on smartphones and other mobile devices. Mobile ads accounted for 69 percent of advertising revenue in the fourth quarter, or $2.48 billion.
In November 2014 the company celebrated the completion of its new $300 million data center in Altoona. Construction on a second data center on its Altoona campus is expected to be completed by the end of this year.