Excluding certain expenses, the tech firm reported earnings of 77 cents per share, above the 62 cents analysts expected.
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The first quarter numbers beat analysts’ forecasts in all the key metrics with the social network, also behind Instagram, reporting net profits of $1.5bn compared to over $500m in the same period past year. The 12-year old company also recorded earnings of $1.51 billion, which doubles the $512 million recorded at this time last year.
Breaking down the numbers, it’s clear that Facebook had advertising to thank for this quarter’s glowing highlights – advertising revenue was up 57-percent year-on-year, hitting $5.2 billion in comparison to 2015’s $3.3 billion. Facebook’s user rank grew to 1.65 billion from 1.44 billion in the first quarter past year. Mobile MAUs grew 5% sequentially and 21% year over year to 1.51 billion users. If the split is approved all Class A and B shareholders will receive an additional two Class C shares for every one Class A or B share they own. The adoption of the proposal is subject to the approval of stockholders at the company’s 2016 Annual Meeting of Stockholders to be held on June 20, 2016.
Mobile advertising revenue – Mobile advertising revenue represented approximately 82% of advertising revenue for the first quarter of 2016, up from 73% of advertising revenue in the first quarter of 2015.
The tech giant’s revenue was recorded at 5.38 billion USA dollars in the first quarter of 2016 from 3.54 billion U.S. dollars posted the same period previous year.
WOW! After underwhelming results from Apple, Google and other big tech names, investors finally found a friend in Facebook after the company shredded Wall Street’s forecasts for revenue, profit and user growth.
First quarter 2016: $1.5 billion, up almost 200%. Revenue also jumped to $5.4 billion from $3.5 billion in the same period a year earlier. Its products include Facebook, Instagram, Messenger and WhatsApp.
Facebook announced its earnings for Q1 2016 a day after Twitter, and it couldn’t have painted a more different picture. It’s still adding users in the USA, though at a slower rate than other place, including the developing world.
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Stretch went on to say that Facebook’s directors believe that a “large part” of the company’s success has come from Zuckerberg and that he should continue to be in charge. People are now so used to this bundle of apps that they spend an average of 50 minutes daily using these apps.
