Facebook's mobile revenues doubled in Q4, analyst forecasts

January 30, 2013 | By Jason Ankeny

Facebook (NASDAQ:FB) will announce its fourth-quarter 2012 financial results after the close of trading Wednesday, and analyst estimates compiled by Bloomberg anticipate mobile revenues will increase dramatically, buoyed by growth in mobile advertising.

Facebook is expected to report fourth-quarter revenues of $1.52 billion, up 34 percent. Mobile revenues doubled last quarter to $304 million, predicts Topeka Capital Markets Analyst Victor Anthony. Mobile advertising is expected to make up 24 percent of Facebook revenues, up from 14 percent in the third quarter of 2012.

"Mobile is definitely important to them, mainly because usage is shifting over to mobile," Anthony said, rating Facebook stock a buy. "They'll have to continue to show they're making strides in monetizing mobile."

Analysts also applauded Facebook's efforts to roll out new mobile applications for Apple's (NASDAQ:AAPL) iOS and Google's (NASDAQ:GOOG) Android, arguing the new services should help maintain user interest and fend off rival services like Twitter and Pinterest. "They do have to continue to invest pretty heavily in the business," said Martin Pyykkonen, an analyst at Wedge Partners Corp.

Facebook's revenue outlook should improve throughout 2013, according to Aaron Kessler, an analyst at Raymond James & Associates. "Given the early positive feedback and traction from Mobile and News Feed as well as the Facebook Exchange, we believe Facebook is poised for strong ad revenue growth," Kessler said in a research note.

For more:
- read this Bloomberg article