Facebook's mobile ad business is surging, helping to lift its quarterly earnings, sending its stock higher in after-hours trading. Bobbi Rebell reports.
REPORTER: Calling all Facebook doubters — the social network handily beat earnings targets, thanks in large part to its hundreds of millions of mobile-device-toting devoted users. Fourth quarter revenue jumped 63 percent. Mobile ads represented a whopping 53 percent of total ad revenue. Morningstar's Rick Summer ...
RICK SUMMER, EQUITY ANALYST, MORNINGSTAR: "Here we have a very big milestone for Facebook. About more than half of the quarterly revenues they actually generated came from mobile. So not only proving that you can make money in mobile, but Facebook is uniquely positioned to really monopolize a lot of that spending."
REPORTER: Facebook now has 1.23 billion monthly users, with 945 million accessing the service on a smartphone or tablet. Facebook says they have seen increasing demand from marketers for those mobile ads, and that their improved tools show the effectiveness of those ads. Shares of Facebook jumped in after hours trading on the news as investors applauded the better than expected report.
RICK SUMMER, EQUITY ANALYST, MORNINGSTAR: "Their ability to monetize is strictly being driven by the fact that users want to go and use that application and that is very compelling as long as we think users are going to continue to use that application 5 and 10 years from now and ultimately that ends up being the largest question on the stock."
REPORTER: The move in mobile all the more remarkable considering Facebook had virtually no revenue from mobile as recently as 2012.
1. Your mojo is a quality that attracts people to you and makes you successful and full of energy. • He's definitely lost his mojo. • He needs to get his mojo working if he's going to win the election.
2. A milestone is an important event in the development or history of something or in someone's life. • He felt that moving out from his parents' home was a real milestone in his life.