You will be redirected back to your article in seconds

Facebook Hits 4 Billion Daily Video Views in Q1; Mobile Ad Revenue Grows 80%

Facebook on Wednesday posted revenue for the first quarter of 2015 that was slightly below Wall Street expectations, but the social giant is still seeing solid growth — especially on the mobile and video front.

On the video front, CEO Mark Zuckerberg said on the company’s earnings call that Facebook in Q1 served an average of 4 billion video views per day. The social giant averaged 3 billion daily video views at the end of 2014. In addition, Facebook rolled out an embedded video player to distribute videos outside the service, with more than 80,000 videos embedded on third-party websites to date. About 75% of video views occur on mobile devices, the company said.

Meanwhile, Hollywood has stepped up spending on Facebook: Q1 was the first quarter that entertainment and media was one of Facebook’s top four industry segments, said COO Sheryl Sandberg.

Sandberg called out Lionsgate’s “The Age of Adaline” campaign, in which the studio targeted video ads to young women on Instagram over the last few weeks. With the film opening Friday, Lionsgate is now running the ads on Facebook. “We expect more marketers to put mobile video at the heart of their campaigns in the future,” Sandberg said.

Asked on the call about Facebook’s plans to enable video publishers to generate revenue from their content, Sandberg said, “We’re basically focused primarily on video on our own site and service, and video tends to be pretty shortform content right now on Facebook because it’s playing in the news feed.”

For the first quarter, Facebook posted revenue of $3.54 billion, up 42% year-over-year (and up 49% excluding foreign-exchange rates). Net income was $512 million, down 20% from $642 million on higher spending; excluding certain items, Facebook said profits were up 28% vs. a year earlier, and earnings per share were 42 cents. Wall Street analysts expected the company to post revenue of $3.56 billion with earnings of 40 cents per share, according to Thomson Reuters.

Mobile ads accounted for 73% of Facebook’s advertising revenue during the quarter, or about $2.42 billion — up about 80% from the year-earlier quarter, when mobile comprised 59% of ad revenue, or about $1.34 billion. At the same time, Facebook usage on desktop computers has continued to decline, with revenue from ads served on PCs dropping 4% in the most recent quarter, according to CFO Dave Wehner.

“This was a strong start to the year. We continue to focus on serving our community and connecting the world,” Zuckerberg said in announcing the first-quarter results.

Facebook’s mobile user base again grew faster than its total users. Mobile daily active users were 798 million on average for March 2015, up 31% year-over-year, while mobile monthly active users were 1.25 billion as of March 31, 2015, rising 24%. Overall, Facebook had 1.44 billion global monthly active users at the end of the period, up 13% from Q1 2014.

Facebook’s expenses for Q1 totaled $2.6 billion, up 83%, an increase Wehner said was primarily driven by higher headcount-related costs, cost of revenue and marketing expenses. The company ended the quarter with 10,082 employees, up 48% from a year earlier.

Earlier Wednesday, Facebook launched a test of Hello, an Android app built by the company’s Messenger team that pulls up info from Facebook about incoming callers and lets users search for people or businesses on the social service and place calls. In addition, the company’s WhatsApp messaging service this week began rolling out voice-calling features for iOS devices.

More Digital

  • Vaccination

    YouTube Yanks Ads From Anti-Vaccination Conspiracy Channels

    YouTube, under fire for facilitating the spread of conspiracy theories and other misinformation, said it will no longer serve ads on channels that espouse anti-vaccination rhetoric. The Google-owned video giant cited its advertising policy that bans “dangerous and harmful” content from eligibility in its monetization program. “We have strict policies that govern what videos we [...]

  • Evan Williams, Twitter founder (R) and

    Twitter Co-Founder Evan Williams Steps Down From Company’s Board

    Twitter co-founder Evan “Ev” Williams is stepping down from the company’s board, Twitter announced in a SEC filing Friday afternoon. Williams will depart from the board at the end of this month, according to the filing. “It’s been an incredible 13 years, and I’m proud of what Twitter has accomplished during my time with the [...]

  • Facebook Logo

    Facebook Shuts Down Controversial Ovano VPN App

    Responding to a continued backlash over its data collection practices, Facebook pulled the plug on its Ovano VPN app Friday. Ovano, which promised users an added level of privacy while using public Wifi hotspots, was used by Facebook for market research purposes. Facebook removed the app from the Google Play store Friday, and the company [...]

  • Smosh

    Smosh Acquired by Rhett & Link's Mythical Entertainment

    UPDATED: Smosh, the long-running YouTube comedy brand, has been acquired by Mythical Entertainment, the company formed by Rhett & Link, hosts of comedy show “Good Mythical Morning.” As first reported by Variety last week, Mythical emerged as the leading candidate to buy Smosh, which was left stranded after parent company Defy Media shut down without [...]

  • China Video Streaming Giant iQIYI Loses

    Chinese Video Giant iQIYI Loses $1.3 Billion in 2018

    Chinese video streaming firm iQIYI lost over $1.3 billion in 2018, as revenues and subscriber numbers ballooned. The deepening losses reflected ever higher spending on original content production. Announcing its first full-year financials since a March IPO that launched it onto the NASDAQ, iQIYI said that it lost $1.3 billion (RMB9.1 billion) last compared with [...]

  • Roku headquarters

    Roku Aims to Top $1 Billion in Revenue in 2019, Beats Holiday Quarter Earnings Expectations

    Roku wants to become a billion-dollar company in 2019, and invest more in its ongoing international expansion. The streaming-device maker told investors on Thursday that it expects to generate between $1 billion and $1.025 billion this year, and that international growth was one of its key investment areas for 2019. Roku made these announcements as [...]

More From Our Brands

Access exclusive content