The results hugely exceeded Wall Street’s already sky-high expectations, and Facebook shares rose by more than 9% in after-hours trading.
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Facebook reported robust first-quarter earnings on Wednesday, posting a 52% YoY jump in sales to $5.3 billion, while profits went up by approximately 300% from $512 million in Q1 FY 2015 to $1.5 billion. The company’s latest financial report blew past analysts’ expectations and seemingly proved that Facebook is in a comfortable leading position in the market.Facebook’s revenue translates to 77 cents per share, which is more than 24% more than the 62 cents per share consensus estimate from Yahoo Inc.
Mobile continues to be a huge area of growth for Facebook.
As of March, 1.65 billion people used Facebook on a monthly basis that’s an increase from 1.44 billion one year back.
SAN FRANCISCO Facebook (FB.O) announced on Wednesday it will create a new class of non-voting shares in a move aimed at letting Chief Executive Officer Mark Zuckerberg give away his wealth without relinquishing control of the social media juggernaut he founded. The proposal is expected to be discussed during the annual meeting of stockholders on June 20.
Facebook founder Mark Zuckerberg told investors: “We had a great start to the year”. It trebled profits in the first quarter compared with a year ago to $1.5 billion. Facebook’s success wasn’t just about the social network.
Facebook’s numbers are in stark contrast to those of Twitter, according to TechCrunch, Twitter added 5 million users this quarter; Facebook added 12 times that many.
In the UK, Facebook will capture £1.43bn in display ad revenue in 2016, or a 32.1% share of display ad spending in the country, representing a 26.1% increase on previous year.
CEO Zuckerberg is also investing in other, more ambitious bets, including virtual reality and artificial intelligence. This quarter, 66% of Facebook’s monthly active users (MAU) were daily active users, which is up from 65% during the same period past year.
Facebook did not address shipment delay issues with its Oculus Rift headset.
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“Facebook’s board of directors is proposing the creation of a new class of publicly listed, non-voting Class C capital stock to ensure that the company maintains this long-term focus”, said Colin Stretch, Facebook’s general counsel.
