Facebook Q4 2012: $1.585 Billion Revenues, $64 Million Net Income, 1.06 Billion Users, 240 Billion Photos Stored,

Facebook reported their Q4 revenues and they hit $1.585 billion in revenue, which is a 40% increase year-over-year.  The company’s net income was $64 million.  The company now hit 1.06 billion users as of December 31, 2012.  Mobile advertising accounted for 23% of the “book’s” total ad revenue, which is an increase from 14% in Q3.

“In 2012, we connected over a billion people and became a mobile company,” stated Facebook founder and CEO Mark Zuckerberg. “We enter 2013 with good momentum and will continue to invest to achieve our mission and become a stronger, more valuable company.”

Facebook’s daily active users are at 618 million and their mobile monthly active users are at 680 million as of December 31, 2012, which is an increase of 57% year-over-year.  The first time that mobile daily active users exceeded the web’s daily active users was in Q4 2012.

The company’s revenue from advertising was $1.33 billion, which represents 84% of total revenue and a 41% increase from the same quarter last year.  The payments and other fees revenue for Q4 was $256 million.

Facebook COO Sheryl Sandberg said that Facebook Offers has grown rapidly since it was launched.  She said that Offers have been claimed by 42 million unique users.  In Q4 2012 around 100,000 SMBs have used the Offers product.  Big brands are also benefitting from Facebook Offers.  For example, Walmart used a campaign to reach 50 million users over Thanksgiving.

Citing research from Datalogix, Sandberg said that ads delivered through Facebook’s News Feed drives 8 times more offline sales than ads on the right hand side of the page.  Around one-fifth of the top grossing iOS developers are testing out Facebook app install ads where they can downloaded promoted apps from the iOS app store.

“We continue to face headwinds in payments revenue, since our games revenue is essentially from desktop computers,” stated Facebook CFO David Ebersman.  Mark Zuckerberg said that the company will be focusing on improving ad targeting.  Zuckerberg said that he wants the organic content to be of the same basic type of format as paid content.  But usually advertisers want “really rich things like big pictures.”  Zuckerberg also said that he wants to offer the same abilities in Instagram for advertising.

Facebook is storing over 240 billion photos and 350 million new photos are uploaded per day.  The company is spending around $1.8 billion in 2013 on capital expenditures, which is mostly on servers, data centers, and infrastructure.  Only 8% of those 240 billion photos account for over 82% of Facebook’s traffic.  The company optimized this issue by using cheaper and slower systems for photos that no one is looking at.  They developed their own software to figure out how popular each photo will be and it gets put in the right spot in every data center.

This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at
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