Facebook mobile ad business on a high

Facebook Inc's mobile advertising business continues to expand. Mobile ad revenue, which accounted for 30% of Facebook's ad revenue in the first quarter, was at the higher end of the range as expected by analysts. 

According to Macquarie Research analyst Ben Schachter, "It needed to be higher for people to get really excited about trend lines."

Facebook's advertising revenue growth, which slowed sharply last year, has regained some momentum as the company has pushed more ads to users on mobile devices such as smartphones and tablets. In the fourth quarter, mobile ads accounted for roughly 23% of Facebook's revenue, a Reuters report says.

The world's largest social network says it now counts 1.11 bn monthly active users and about 665 mn daily active users.

The company says the number of monthly users who logged on solely through mobile devices more than doubled to 189 mn users from a year ago period.

The company has rolled out a string of big product launches and revamps in recent months that included an overhaul of its newsfeed and search feature, as well as an app for Android smartphones that puts Facebook features front and center on phone homescreens.

The various initiatives have contributed to a rise in spending, with Facebook's 60% year-on-year increase in costs and expenses outpacing the 38% revenue increase.

Facebook says it earned $219 mn, or 9 cents a share, in the first 3 months of the year, compared to $205 mn, or 9 cents a share, in the year-ago period.

Excluding certain items, it earned 12 cents a share. Analysts polled by Thomson Reuters I/B/E/S were looking for adjusted EPS of 13 cents.

Facebook's revenue in the first quarter totaled $1.46 bn, versus $1.06 bn in the year-ago period, and roughly in line with analyst expectations. Advertising revenue was up 43% in the first quarter, the fastest growth rate since the end of 2011.