Mobile advertising accounted for more than half of Facebook’s total ad revenue in the final quarter of last year, a sign that the social network born a decade ago in the desktop computer era is succeeding in its goal of being “mobile first.”
Facebook’s earnings and revenue handily surpassed Wall Street’s expectations for the third quarter in a row as it further expands the number of users and the amount of money it makes on mobile ads.
“If 2012 was the year where we turned our core product into a mobile product, then 2013 was the year where we turned our business into a mobile business,” chief executive Mark Zuckerberg said in a conference call with analysts. “I expect 2014 will be the year where we begin to deliver new and engaging types of mobile experiences.”
Facebook said Wednesday that it earned $523 million, or 20 cents per share, in the October-December quarter. That’s up from $64 million, or 3 cents per share, a year earlier. Adjusted earnings were $780 million, or 31 cents per share, in the latest quarter, 4 cents ahead of analysts’ estimates. Revenue grew 63 percent to $2.59 billion, from $1.59 billion. Analysts, on average, had expected revenue of $2.35 billion.
Facebook’s stock soared 12 percent in extended trading after the results came out.
Facebook had 1.23 billion monthly users worldwide at the end of 2013. Of these, 757 million signed in at least once a day, up 22 percent from a year earlier.
— Associated Press
Pimco on Wednesday promoted another four of its top investment managers into more strategic roles, expanding the pool of potential successors to the fund management firm’s co-founder and star bond picker Bill Gross following the sudden resignation of his previous heir apparent.
Mark Kiesel, Virginie Maisonneuve, Scott Mather and Mihir Worah, currently managing directors at Pimco, or Pacific Investment Management, will become deputy chief investment officers, the company said in a statement.
They will join Dan Ivascyn and Andrew Balls, who were appointed last week after Mohamed El-Erian, the chief executive who shares the chief investment officer role with Gross, abruptly announced plans to resign.
● The combination of Fiat and Chrysler has created a new name — Fiat Chrysler Automobiles — and the company’s stock will be listed on the New York Stock Exchange, if Fiat’s shareholders approve a proposal from its board of directors. The new name and the shareholder proposal, approved by Fiat’s board of directors Wednesday, comes eight days after Fiat closed its purchase of the Chrysler shares it didn’t already own.
● Boeing shares dropped more than 5 percent after it predicted 2014 revenue of $87.5 billion to $90.5 billion — at least $2 billion less than expected by analysts surveyed by FactSet. Boeing finished 2013 with a fourth-quarter profit of $1.23 billion, or $1.61 per share, well ahead of analyst expectations. Profits grew in both its commercial airplane and defense businesses. Revenue rose 7 percent, to $23.79 billion. For all of 2013, Boeing earned $5.96 per share on revenue of $86.62 billion.
● Deloitte has passed PricewaterhouseCoopers to become the world’s top accountant by revenue, a global survey showed. The International Accounting Bulletin said Deloitte, PwC, KPMG and Ernst & Young, dubbed the Big Four, still dominate the sector with over two-thirds of the market. Deloitte reported fee income of $32.4 billion last year, just ahead of PwC with $32 billion. Ernst & Young came third with $25.9 billion and KPMG with $23.4 billion.
— From news services
● 8:30 a.m.: Fourth-quarter gross domestic product and weekly jobless claims.
● 10 a.m.: Pending home sales for December and weekly mortgage rates.
● Earnings: Amazon.com, Exxon Mobil, Google, UPS, Visa.