Instagram has more than 500 million monthly active users.
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Facebook shares rose 5% in extended trading.
Mobile advertising revenue contributed 84 per cent to the company’s total advertising revenue, compared with 76 per cent a year earlier. While the Street was expecting a topline of $6.01 billion, the company reported revenue of nearly $6.24 billion, beating the streets estimates by more than $200 million.
The company now has 1.71 billion monthly active users, adding 60 million users from the previous quarter and growing its user base by 15% from the same quarter a year earlier. Messenger, which was broken off into a standalone app in a move Zuckerberg called “controversial”, recently topped one billion monthly users.
Moreover, Facebook’s management expects the strength in ad revenue growth to continue into the second half of fiscal year 2016.
“The scale we’ve achieved with messaging services makes clear that this is more than just a way to chat with friends”, said Zuckerberg, “which is why we are making it easier to connect with groups and businesses as well”. The company is gradually strengthening its stance in the mobile video market, a space that is now being dominated by YouTube and Snapchat.
The 32-year-old social media entrepreneur is the youngest of the world’s ten richest people, thanks to the soaring stock of his company Facebook, which has increased by 223% since the company went public in May 2012. Prior to that, the feature was available for celebrities to share live videos from the Facebook Mentions app.
Zuckerberg reiterated his company’s 10-year plan on the call with analysts.
Now, considering that Facebook has over 1.57 billion mobile users and 1.03 billion of them are active users, this means that approximately 65.6% of the company’s total mobile users use the social media daily.
Users of its mobile phone apps for Facebook, Instagram and its Messenger service are also spending appreciably more time on them. “Massive user growth combined with fantastic monetization”, Jan Dawson, chief analyst with Jackdaw Research, told USA Today.
Mobile also continued to be a strong area for the social media site, with more than 90 per cent of the site’s users accessing it on a mobile device, such as a smartphone or tablet, each month.
The tech firm reported a profit of $2.05 billion during that time period and earned 71 cents a share. According to Forbes, this occurred due to Facebook’s Q2s earnings being much higher than expected.
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For the three months ending in June, Facebook posted $6.44 billion in revenue, a 59 percent increase on Q2 2015, while profit rocketed by 189 percent to $2.06 billion year on year.
