It’s been a while since we last checked in on Facebook, so we figured we would go ahead and get you up to speed on the social media platform.
Earlier this year, the social media giant seemed to be on a roller coaster ride with investors (and just about everyone else) as they saw a mix of high and lows that elicited a range of comments, such as the controversial comparison to an infectious disease.
One roadblock that proved to be quite challenging for the social platform was the result of a drop in usage among teenagers. In November of 2013, Facebook reported a drop of 20% among teen users–from 76% in 1st quarter to 56% in the 3rd quarter of 2013–as teens started switching over to more mobile friendly apps such as Snapchat and Whatsapp.
Fortunately, their 2013 4th quarter earnings showed that Facebook was still a heavyweight contender in the realm of social media, with a 63% increase in revenue and eight-fold increase in profit for the fourth quarter. The most noticeable thing about the earnings was that Facebook reported that mobile advertising accounted for 53% of revenue in the fourth quarter, a jump up from the 23% revenue it reported a year earlier.
Still, as we mentioned in our previous posts about Facebook, even with the spike in profits, Facebook still had a long way to go before they could prove that they were in the clear. With the 2014 1st quarter earnings now in, those concerns are proving to be less of an issue.
USA Today reports that Facebook’s first-quarter earnings were $885 million (34 cents per share) on revenue of $2.5 billion, which exceeded the expected profit of 24 cents and $2.36 billion in revenue. About a year ago, Facebook rang up a profit of 12 cents and revenue of $1.46 billion.
The credit, according to Facebook, goes to their mobile marketing. As Chief Operating Officer Sheryl Sandberg stated, “mobile is a strong driver for us,” with about 60% of company’s ad sales coming from mobile devices.
What does this mean for business?
Simply put, Facebook has definitely pulled through in the mobile app arena with a 40% increase in Facebook users–making a total of 945 million people as of December 31st, 2013–visiting the site on their mobile devices.
For now, we think it is safe to say that Facebook has made a pretty good comeback. But as with any tool in your recruiting arsenal, you need to always keep an eye on any changes that can happen.
Fortunately, there are plenty of other recruiting tools that employers can use to attract top talent, like the ones we have at AIM Careerlink. If things start going south, you know you’ll extra support with AIM Careerlink.