The Wall Street Journal said Facebook was “thriving by grabbing a bigger share of a growing digital-advertising pie”. Analysts had expected the company to deliver earnings per share of 52 cents on $4.37 billion in revenue.
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Meanwhile, Facebook said that revenues from mobile devices accounted for 78% of total revenues, up from 66% a year ago. Those added costs may be related to the company’s preparations in launching Oculus, its VR effort, early next year.
Advertising is the lifeblood of Facebook after it attributed $ 4.3bn (£2.8bn) of the overall sales to ads – a 45 percent increase year-on-year.
Zuckerberg also took to his Facebook page to say, “Our community now has more than 1.55 billion people, including more than 1 billion people active every day”.
Its advertising revenue is projected to grow to US$2.8 billion by 2017.
Facebook has emphasised its video content a lot this year, and it seems it has been successful in convincing marketers to get on board.
The social media network also revealed that daily active users were 1.01bn on average for September 2015, representing a year-on-year increase of 17 per cent.
Facebook, propelled by its expansive advertising machine and enormous user base, has consistently been a bright spot for technology earnings.
“We’re just so early in this right now”, CEO Mark Zuckerberg said when asked about video on the call.
Most of Facebook’s new users come from outside Europe and North America. Mobile MAUs were up 23 percent to 1.39 billion during the period.
Mobile ad revenue soared 73% in Q3, while revenue from ads shown on a PC screen declined by 7.3% The reason why mobile is so important to Facebook was explained by Chief Operating Officer Sheryl Sandberg. Mobile daily actives are up 27 percent compared to a year ago.
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The stock rose about 5 per cent to an all-time high of US$109.34 ($165.85) on Wednesday (US time) before paring gains to about 2 per cent.
