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| Facebook shares soar 18% on strong mobile ad earnings | |
| (35 minutes later) | |
| Shares in Facebook have leapt 18% as it beats earnings expectations with stronger than expected mobile ad sales. | |
| The company reported profits of $333m (£217m) in the second quarter. | The company reported profits of $333m (£217m) in the second quarter. |
| "The work we've done to make mobile the best Facebook experience is showing good results and provides us with a solid foundation for the future," said founder Mark Zuckerberg in a statement. | "The work we've done to make mobile the best Facebook experience is showing good results and provides us with a solid foundation for the future," said founder Mark Zuckerberg in a statement. |
| Facebook is the world's largest social networking company. | Facebook is the world's largest social networking company. |
| According to chief financial officer, David Ebersman, 20 billion minutes a day were spent on Facebook in June. | |
| "This quarter marks the end of our first year as a public company and I think we've created a good foundation for the future," said Mr Zuckerberg on a call to discuss the earnings. | |
| The company's share price is still down more than 16.7% from its stock market debut price of $38. | |
| Mobile boost | Mobile boost |
| The company saw $655.6m in revenue from mobile ads in the three months from April to June - more than 41% of the total $1.6bn it made from advertising overall, compared with 30% for the same period last year. The number of mobile users expanded 51% to 819m. | The company saw $655.6m in revenue from mobile ads in the three months from April to June - more than 41% of the total $1.6bn it made from advertising overall, compared with 30% for the same period last year. The number of mobile users expanded 51% to 819m. |
| Clark Fredricksen of research firm eMarketer told the BBC that the results were "incredibly impressive - they've exceeded expectations." | Clark Fredricksen of research firm eMarketer told the BBC that the results were "incredibly impressive - they've exceeded expectations." |
| eMarketer estimates that Facebook will take in more than $2bn in mobile advertising this year and increase its share of the digital ad market to 5.04% - up from 4.11% in 2012. | eMarketer estimates that Facebook will take in more than $2bn in mobile advertising this year and increase its share of the digital ad market to 5.04% - up from 4.11% in 2012. |
| "I'd say that Facebook is in a unique position with the ad market right now in that it is very far ahead of any other major ad platform in mobile display advertising," said Mr Fredricksen. | "I'd say that Facebook is in a unique position with the ad market right now in that it is very far ahead of any other major ad platform in mobile display advertising," said Mr Fredricksen. |
| The company has focused on perfecting its ad sales programmes. Last month, it announced changes to its Ads Manager which it said would provide advertisers with better data. | The company has focused on perfecting its ad sales programmes. Last month, it announced changes to its Ads Manager which it said would provide advertisers with better data. |
| In April, Facebook won back General Motors almost a year after the car company pulled advertising from the site. | In April, Facebook won back General Motors almost a year after the car company pulled advertising from the site. |
| Video boom | |
| Mr Zuckerberg also discussed one of the company's most recent innovations: the introduction of video to Instagram, the photo sharing platform that Facebook bought in April 2012 for $1bn. | |
| The video feature was introduced as a way for the company to compete with Twitter's short video sharing service, Vine. | |
| "Adding video fits really naturally with the Instagram mission," said Mr Zuckerberg. | |
| On the call, analysts asked a question that many have wondered: When will Instagram finally begin to generate any sort of revenue for the company? | |
| Mr Zuckerberg, while emphasising that it's "been clear that we're building Instagram to be a business", simply said that Facebook was focused on building Instagram's "imprint", or user base. | |
| He also alluded to two new products that have yet to gain traction with Facebook users: Home, the company's mobile phone software, and Graph Search. | |
| Mr Zuckerberg said he thought these products "will take longer to develop." |