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"Two years after its turbulent IPO, Facebook is riding high.\nIt has more than one billion monthly active users on mobile and mobile ads now account for the vast majority (59% as of last quarter) of total ad revenue, proving its successful transition to mobile. Its 1.2 billion-plus user base looks more impressive every time someone publishes an article about Twitter's user growth slowing at the 250 million mark. And the stock is hovering around $70 a share, approaching its all-time high. \nThe question now, ahead of Facebook's second quarter earnings report on Wednesday. is how much the social network can supercharge its revenue through new and existing ad products. \nSee also: Why Facebook and Twitter Are Embracing Ecommerce\nFacebook is expected to report earnings of $0.32 per share on revenue of $2.81 billion for the June quarter, according to analysts polled by Thomson Reuters. If it hits that estimate, Facebook's second quarter revenue will have increased by about $1 billion or more than 50% year-over-year.\nThat growth in revenue is attributed to a mix of factors, according to analysts, including the success of app install ads and the introduction of a mobile ad network as well as overall growth in the digital ad industry.\nThe World Cup, which straddled the June and September quarters, may also prove to be a boon for the social network's engagement and revenue. \n\"Our checks and industry data points continue to suggest healthy spending trends for Facebook's advertising business for 2Q,\" Shyam Patil, an analyst with Wedbush, wrote in an investor note last month. \"It appears that the World Cup was additive to spend, even representing ~10% of total annual budget for one sPMD.\"\nAnalysts are also bullish on potential revenue streams from Instagram and video ads on Facebook \u2014 though both are rolling out slowly \u2014 and may raise questions about both on the earnings call. \n\"Video ads could command $3M+ daily and we estimate video ads could represent as much as 5% to 10% of Facebook\u2019s advertising dollars in 2H'14, depending on how aggressively Facebook rolls them out,\" Arvind Bhatia, an analyst with Sterne Agee, wrote in a recent note. \"Ultimately, video ads will help Facebook more directly go after the $200B+ worldwide TV advertising market.\"\nFacebook's blockbuster acquisition of WhatsApp has yet to close and the app is not expected to begin revving up its monetization efforts this year.\nBhatia predicts that mobile ad revenue will account for 62% of total ad revenue for the quarter, up from 59% the previous quarter. He also expects Facebook to report having 1.31 billion monthly active users overall and about 1.058 billion on mobile. \n\nFB data by YCharts"^^<http://www.w3.org/2001/XMLSchema#string>
<http://mashable.com/2014/07/23/facebook-q2-earnings-preview-2014/>