Facebook Profit down by 9 percent as cost rise

Facebook, Inc. today reported financial results for the quarter ended June 30, 2015. Total revenue for the quarter rose to US$ 4 billion from US$2.9 billion a year earlier, gone up by 39%.

Out of the total revenue of US$ 4 billion, US$ 3.8 billion is towards advertising income. Ad revenue grew 43% year-over‐year. Mobile ad revenue grew 74% year‐over‐year, making it over three quarters of total ad revenue.


Mobile advertising revenue represented approximately 76% of advertising revenue for the second quarter of 2015, up from approximately 62% of advertising revenue in the second quarter of 2014.

Cash and cash equivalents and marketable securities were US$14.13 billion at the end of the second quarter of 2015. Free cash flow for the second quarter of 2015 was US$1.33 billion.

Income from operation is at US$ 1.27 billion compare to US$ 1.39 billion, down by 8% year-on-year.

Facebook’s Operating margin for the second quarter FY 2015 is at 31% and net income is at US$ 719 million compare to last year’s US$ 791 million.

Total cost and expenses of Facebook has gone up by 80% year-on-year. For this second quarter FY 2015, cost and expenses is at US$2.769 billion as against US$ 1.520 billion a year ago. Capital expenditures for the second quarter of 2015 were US$549 million. Research and development cost for the company is at US$ 1170 million for this quarter compare to US$ 492 million a year ago.

“This was another strong quarter for our community,” said Mark Zuckerberg, Facebook founder and CEO. “Engagement across our family of apps keeps growing, and we remain focused on improving the quality of our services.”

As per the company, More than 968 Million people worldwide now use Facebook Daily and 65 Percent of our monthly actives are also daily actives.

When it comes to time spent, across Facebook, Messenger and Instagram, People are now spending more than 46 Minutes per day on average. That doesn’t include WhatsApp.

Now, more than 40 Million small businesses and medium sized businesses around the world using Pages on Facebook.

In April 2015, QuickFire, a video compression startup has been acquired by Facebook and earlier to that in January they acquired Wit.ai, speech recognition startup.

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