Facebook reports $700 million profit in quarter four

Facebook has recorded profits of $701 million in the fourth quarter, marking a 34% increase on the same period last year.

The company’s advertising revenue rose by 53% to $3.59 billion, with 70% of the total coming from mobile ad sales, reported the BBC.

A statement released by the social media network quoted CEO Mark Zuckerberg as saying, “We got a lot done in 2014.”

Total profits for the year stood at $2.9 billion, almost double the total for 2013.

However, the profits made by the company on each dollar of revenue dropped from 44% to 29% from a year earlier as the network invested more heavily in marketing and research and development (R&D).

Facebook voiced a common complaint echoed by other US firms this earnings season, saying that its revenue would have grown by 53% instead of 49% were it not for unfavourable foreign exchange rates.

The social networking giant said that it now has 1.39 billion active users each month, a 13% jump over last year.