Active, in this case, means the advertiser has advertised on the site in the last 28 days.
Facebook's announcement demonstrates accelerated growth, as the company announced 1.5 million active advertisers in July 2014, and one million in June 2013.
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The company credited its easier-to-use ad products and the new ability of small businesses to manage ads on mobile devices as two reasons for the growth.
"You're creating jobs, sharing new ideas, and inspiring all of us to dream big," CEO Mark Zuckerberg and COO Sheryl Sandberg wrote in a public thank you note to advertisers. "Our mission is to make the world more open and connected, and an important part of that is helping people connect with businesses."
Facebook has also tried to improve its relationships with advertisers via its new Ads Manager App, which allows advertisers to create, manage, and track their campaigns from a phone. Larger companies typically have teams to manage their ad buys, but this tool is designed to ease the process for smaller businesses.
Separately, TheStreet Ratings team rates FACEBOOK INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FACEBOOK INC (FB) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 18.6%. Since the same quarter one year prior, revenues rose by 48.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- FB's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 9.04, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for FACEBOOK INC is currently very high, coming in at 94.31%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 18.20% trails the industry average.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Internet Software & Services industry and the overall market, FACEBOOK INC's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: FB Ratings Report