According to the consensus, Facebook is also likely to post $6.01 billion in revenues, which is 57 million less than the estimate issued by estimize.com, calling for a topline beat this season. The company’s net income for the quarter was $2 billion, compared to $719 million a year ago. Analysts were looking for profits of 82 cents per share on roughly $6 billion in revenue for the quarter. Investors’ optimism – Facebook’s stock hit an all-time high Wednesday before earnings were announced – was rewarded.
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“Our community and business had another good quarter”, Facebook CEO Mark Zuckerberg said in the earnings release. Mobile advertising also continues to see growth, representing 84 percent of total advertising revenue.
The company’s stock climbed more than 6 percent in after-hours trading to $131.08 per share.
Facebook had 1.13 billion daily active users across desktop and mobile in June of 2016, compared to 968 million during the same month previous year. It’s still too early to draw conclusions on the size of the drop in reach and referral traffic for publishers, though Facebook admitted it’d be significant. And so far the vast majority of that revenue comes from Facebook and Instagram, with Messenger and WhatsApp still largely untapped.
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For millions around the world, Facebook has become the phone book, newspaper and photo album – and is now trying to compete with TV as the place to go for live broadcasts. “I hear fearful voices calling for building walls”. The average revenue per user in those regions is still tiny, compared to in the United States: $1.77 and $1.13, respectively, versus $14.34 and $4.72 in the USA and Europe.
