Facebook's daily active users (DAUs) for mobile grew by 54 percent year-over-year for the first quarter of 2013. The social network reported that it's DAUs for mobile eclipsed 665 million as of this March. Facebook said its total DAUs were over one billion for the quarter.
While the firm's user base grew, its earnings still slightly failed to meet expectations. Facebook reported an earnings per share increase of 12 cents. Analysts had expected the company to reach an earnings per share increase of 13 cents.
Facebook was able to beat expectations on revenue. Wall Street had predicted that the social network would hit $1.44bn for the quarter but Facebook beat that, making $1.46bn in revenue in Q1. Year-over-year Facebook revenues grew by 38 percent.
A major part of the company's revenue success has been ad dollars. Facebook reported that it received $375m in advertising revnue for the quarter. The figure represented about 30 percent of Facebook's total revenue figures.
One area where Facebook has suffered this quarter was average revenue per user. Facebook reported that it made 14 cents less in advertising revenue per user in this quarter compared to the last.
Advertising industry commentator Sephi Shapira, chief executive officer at MassiveImpact, says that Facebook needs to focus its energy on using user data for targeted marketing to increase adverting per user revenues next quarter.
"A key to sustainable future growth in ad revenue will be a utilisation of Facebook's vast amount of user data in ad serving techniques, making ads substantially more relevant to the end user and in turn more profitable for the advertiser," said Shapira.
Facebook's chief operating officer Sheryl Sandberg tends to agree with the outlook. During a call with investors Sandberg preached improving the quality of ads and making them more user relevant.
"We are particularly focused on improving the quality of our ads because we think that is the best way to improve the experience for users and marketers," said Sandberg.
Facebook chief executive officer Mark Zuckerberg also believes that mobile ads will play a key role in the company's future. He has long preached Facebook as a mobile-first company. Zuckerberg believes that mobile ads focused on app sales will help propel both Facebook's ad revenue and app marketplace.
"On mobile, it makes sense that ads encourage you to visit apps, not websites," said Zuckerberg.
"Every major brand wants to build apps as a storefront for their customers. This market is big and I expect it grow quickly."
Facebook has made many strides in the mobile arena in the past year. Along with the recent launch of its app store, the firm also introduced its Android app 'Home' last month.
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