Facebook Inc (NASDAQ:FB) growth is showing strong signs of gaining momentum, especially on mobile. The company crushed its estimates across the board, and its depressed stock price took off by more than 30%. The company has proven itself as a great outlet to monetize an increasingly growing mobile audience. Its mobile advertising fortunes are now only behind the Internet giant, Google Inc (NASDAQ:GOOG).
Revenue reacceleration
Facebook Inc (NASDAQ:FB) maintains healthy levels of cash at more than $10.3 billion, which enables the company to make more key strategic acquisitions. And the company is generating strong levels of operating cash flow with more than $1.3 billion in the last quarter. Facebook Inc (NASDAQ:FB)’s revenue growth rate of more than 53% in Q2 2013 has been the fastest pace in the last six quarters for the social media leader.
Users and advertisers love Facebook
Facebook Inc (NASDAQ:FB)’s monthly user base has surged to 1.15 billion at the end of 2Q13, a 21% Y/Y increase. The number of users tuning in on a daily basis increased to more than 700 million at the beginning of Q3. But the real optimism surrounding Facebook has been the company’s mobile user growth which increased a stellar 51% Y/Y to 819 million users.
Owing to the strong growth in consumers on Facebook’s platform, the company’s advertisers are digging in, bolstered by a lot of small and local businesses. The company now has more than 1 million active advertisers who utilize Facebook’s platform, data and analytics to reach out to their target customers. Advertising revenue grew by more than 15% in each geographic region.
Driving user engagement
Facebook is driving user engagement to record highs as the number of monthly users using Facebook on a daily basis has increased to 61%. Other company initiatives like hastags, and embedded posts are also helping to keep consumers engaged on Facebook’s platform. Also, the launch of video on Instagram got off to strong start with more than 5 million video uploads in the first day.
Facebook’s CEO addressed the media rumors that a rising number of social media companies are eating into user engagement levels of Facebook especially younger demographics. But Zuckerberg stated that the firm’s internal data has shown that levels are steady or increasing. Time spent on Facebook, exceeded more than 20 billion minutes per day in the month of June.
Facebook’s reliance on Zynga Inc (NASDAQ:ZNGA) has decreased substantially. King.com has been growing its gaming franchises such as Candy Crush Saga on Facebook’s platform on desktop and later on mobile, and has kept users actively engaged. The Candy Crush Saga has turned out to be the most popular game on Facebook with more than 45 million users, according to AppData.
