Facebook ad revenue up by 43%, Twitter's by 63% Y-O-Y
All three internet giants Facebook, Twitter and Google posted strong financial results though a slowdown in monthly active users might be a cause for concern for Facebook and Twitter
Facebook exceeded analyst expectations on all fronts in Q2Y15, by growing revenue, profits as well as user base and mobile advertising revenue.
Overall revenues stood at $ 4.04 billion, up from $ 2.9 billion for the same period in 2014. Advertising revenue also went up to $ 3.8 billion from $ 2.6 billion for the same period in 2014 — a rise of 43 per cent.
On the other hand, fellow social media competitor, Twitter must have been hoping for a better performance after top management changes. Also, in Q1 2015, the company had reduced its FY 2015 earnings forecast after seeing less than expected Q1 revenues.
In Q2’ 2015, Twitter saw its financial stability continue to improve as net losses for the quarter stood at $136 million, down from $144 million for the same period last year. Revenues increased 61 per cent and stood at $ 502 million. Advertising revenue totaled $ 452 million, an increase of 63 per cent year-over-year and mobile advertising revenue constituted 88 per cent of total ad revenue.
However, the one area that has troubled analysts and investors is that the growth in user base. In Q2, Monthly Active Users (MAU) increased just 15 per cent YoY. A similar problem has been plaguing Facebook, which saw MAUs increase by just 13 per cent YoY.
On the other hand, Google, posted another strong quarter financially with revenues of $17.7 billion and revenue growth of 11 per cent year over year. Total advertising revenue increased 3 per cent in Q2 over Q1’15 and 11 per cent YoY. Aggregate paid clicks were up by 7 per cent QoQ and 18 per cent YoY. Google has credited the strong financials to strong performance of core search business, particularly mobile, complemented by growth in YouTube and programmatic advertising.
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