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Image Source: Andrew Feinberg
Clare Burnett

Facebook profits almost double those of 2013

Social media giant Facebook has reported that total profits for the year were $2.9 billion, almost double the total for 2013.

Revenue for the full year 2014 was $12.47 billion, an increase of 58% year-over-year.

Fourth-quarter profits of $701 million (£462 million), were a 34% increase on the same period a year ago.

Advertising revenue grew by 53% to $3.59 billion, with nearly 70% of that coming from mobile ad sales.

The firm said it now has 1.39 billion active users each month, a 13% increase from a year ago.

However, due to extensive investment in research and development, the profit the company made on each dollar of revenue decreased from 44% to 29% from a year earlier.

The amount Facebook is spending on R&D nearly tripled to $1.1 billion this quarter.

The firm has also spent large amounts on developing new acquisitions such as Instagram, WhatsApp and virtual-reality headset maker Oculus Rift, as well as its own in-house messaging products and video services.

Mark Zuckerberg said: “We got a lot done in 2014. Our community continues to grow and we’re making progress towards connecting the world”

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