Facebook continued its growth streak on Wednesday with second-quarter earnings results that outperformed Wall Street expectations, largely due to the company’s strong user engagement and dominance in mobile and digital advertisements.
Advertisement
In the second quarter, Facebook reported net income of $2.06 billion, or 71 cents a share, compared with $719 million or 25 cents a share a year ago.
Facebook Inc (NASDAQ:FB) released its latest earnings report after closing bell, posting adjusted earnings of 97 cents per share on $6.44 billion in revenue. According to the report, as of June 30, it had over 1.7 billion monthly active users (MAUs) – an increase of 15% year-over-year – and 1.57 billion mobile monthly active users. Mobile daily active users grew 22% to 1.03 billion.
“Our community and business had another good quarter”, said Facebook founder and chief executive Mark Zuckerberg. “We’re much more interested in short-form content”, Sandberg said.
Facebook has laid the groundwork to make money from the messaging app by encouraging users to communicate more with businesses.
Facebook has reported revenue for the last three months of £4.87 billion – a figure that exceeded analyst predictions by more than £303 million.
Facebook’s stock, already trading at all-time highs on Wednesday, shot up by more than 5% in after hours trading.
Facebook is the world’s largest social network, with over 1.39 billion monthly active users. Facebook says it is tweaking the formulas that decide what users see in their news feeds to focus on friends and family, not news articles and other more impersonal material.
The company now has 1.71 billion monthly users, a surge from 1.65 billion in the previous quarter. Mobile accounted for 84% of the quarter’s ad revenue.
A year ago, the year-over-year growth was 61 per cent and two years back, it was a whooping 124 per cent.
Total revenue rose 59.2% to $6.44bn, compared with the estimate of $6.02bn.
Advertisement
In recent months, Facebook has introduced 360 video, which provides a 360-degree view of videos, and Facebook Live, which enables any Facebook user to broadcast video live to the world.
