The company beat analysts’ expectations by posting revenue of $5.38 billion (up 52 percent year-over-year), with most predictions expecting a total of $5.26 billion. That would indicate mobile ad revenue was approximately $4.265 billion during the quarter, a 76.2% increase compared with $2.421 billion a year earlier.
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Monthly active users: 1.65 billion vs. 1.62 billion expected.
Facebook posted a profit of $1.51 billion for the quarter, or $0.52 per share. Mobile usage grew at an even faster pace – monthly active users hit 1.51 billion – up 21% from a year before.
According to research firm eMarketer, Facebook is forecast to account for approximately 12 percent of the $186.81 billion global digital advertising market in 2016. Facebook‘s stock was up nearly 10% in after-hours trading.
Advertising revenue rose 57 percent year over year to $5.2 billion in the quarter, and Mobile Ad Revenue now amounts to 82 percent of total ad revenue.
Net income of $1.5bn was a 195 per cent increase from a reported $512m in last year’s quarter.
Facebook also announced that its board had approved the creation of a new class of non-voting capital stock, known as the Class C capital stock. We now have more than 1.65bn users, and over a billion users each day on mobile.
The company, which held its annual conference for developers in April, has also been releasing new features, including supporting chatbots in its messaging app and opening up Facebook Live so people can stream from any device including a drone.
Amid a litany of new artificial intelligence and virtual reality initiatives, Facebook CEO Mark Zuckerberg announced at the F8 conference earlier this month that the company would start letting advertisers develop their own chat bots within Facebook’s messenger platform. By creating the new class of shares, the company is fending off dilution, an economic phenomenon that results from offering more shares to the market.
The social network’s latest earnings pleased investors, sending stock soaring almost 10 per cent and helping Zuckerberg add billions to his wealth.
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A much better metric of the popularity of Facebook would be the number of users spending time daily on the social network.
