Breaking Down Facebook's Earnings and User Growth

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Oct. 30 (Bloomberg) -- Facebook reported third-quarter sales that topped analysts’ estimates as advertisers boosted spending on promotions targeting users on smartphones and tablets. Jon Erlichman breaks down the numbers on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

The number of users continue to grow.

The demand for advertising and facebook is growing and facebook is making more ad space available.

Put those three together and it helps explain some of the financials we will show you starting with the number of people using facebook on mobile devices.

The number of users on mobile devices have been climbing at a very fast rate and they are now at 874 million on a monthly basis and compare that to the advertising side.

A growing amount of the ads on those devices are becoming a bigger part of the total pipe.

-- total pie.

Think of the ads that are on people's news feeds in a big way.

All plays into the revenue story on what we saw was revenue north of $2 billion during this time, a significant increase from the roughly 1.2 6 billion in the same stretch last year.

When the revenue is rolling in and you half to scale some fixed operating costs, more money can flow to the bottom line.

It's amazing to look at the operating margins which have continued to climb higher from 39% in the first quarter to 49% now.

What about the revelation that facebook is seeing a decrease in the number of younger teenagers using facebook on a daily basis he?

That may be one reason beside change in the views of the stock price.

David everson brought that light and also contrast around the fact that generally speaking, there are a lot of teens using it on a regular basis.

The big question is whether or not this matters from the business side.

All of these ads they are selling, is there a higher percentage likelihood of you clicking on an ad is a young teenager versus someone else he?

Obviously people are paying a lot of attention to that little nugget that we shared.

Emily.

Jon erlichman, thank you.

This text has been automatically generated. It may not be 100% accurate.

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