Facebook Shares Soar As Mobile Drives Big Jump In Ad Sales

In total for the full year 2015, Facebook said its revenue came in at $17.93 billion, an increase of 44 percent year-over-year.

A 3D plastic representation of the Facebook logo is seen in this illustration in Zenica, Bosnia and Herzegovina, May 13, 2015.

Reporting fourth quarter earnings after market close Wednesday, Facebook released a slew of new metrics showcasing its strength in mobile. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Last year, Facebook posted a revenue of $3.85 billion (AU$5.46 billion). The company generated almost $2.1 billion in free cash flow during the quarter, and $6.1 billion in free cash flow throughout all of 2015.

Facebook quarterly profit more than doubled as its ranks swelled during the past year to a mammoth user base of almost 1.6 billion, it said Wednesday, January 27 (January 28, Manila time).

Mobile advertising accounted for 80% of ad revenue, up from 69% year-over-year.

Daily active users totalled 1.4 billion on average, up 17 per cent year-over-year, and daily mobile users hit 934 million on average for December 2015, an increase of 25 per cent year-over-year. Of those, 1.44 billion used the service on mobile devices, an increase of 21 percent.

Q4 also saw Facebook closing in on 1bn daily active users on mobile, with the figure growing from 894m in Q3 to 934m, an increase of 4.4 per cent despite the relative maturity of the company's offering. "Our community continued to grow and our business is thriving", said Facebook CEO Mark Zuckerberg, in a statement.

During the last three months of 2015, Facebook brought in $5.8 billion - growth of 52 percent.

While Google is still the leader in advertising business, Facebook's performance suggest that it is narrowing the gap as its sales ramp up and the company starts generating revenue from mobile app Instagram. Almost 500 million users are on Events, up from 450 million in July previous year. In the fourth quarter, Facebook's worldwide ARPU increased 26% sequentially and 33% y-o-y to $3.73. "With a wealth of data driving its ad platform, it's no wonder advertisers are still placing their faith and dollars in Facebook's hands", he said. He added that more than 800 million now use the Messenger each month, and that Facebook will add new services connected to airlines and ways users can interact directly with businesses. "Facebook and Instagram have become the two most important mobile advertising platforms".

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