Facebook has reported revenue for the last three months of £4.87 billion – a figure that exceeded analyst predictions by more than £303 million.
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The company posted quarterly revenue of $602 million, up 20 per cent year-over-year and reported $107 million GAAP net loss ($0.15 per share) with quarterly non-GAAP net income of $93 million ($0.13 per share).
Net income attributable to Facebook’s stockholders rose to US$2.05 billion, or 71 U.S. cents per share, compared with US$715 million, or 25 United States cents per share, a year earlier.
Analysts expect Facebook to earn revenue of more than $25 billion this year.
Facebook results highlight one thing: Mobile is where most of its advertising is coming from, and the company is turning to videos as its future mode of content.
Users, like the dollars, are also flocking to mobile, with Facebook reporting that mobile daily active users were 1.03bn on average for June 2016, an increase of 22% yoy.
Mobile advertising revenue accounted for 84 per cent of the company’s total advertising revenue, compared with 76 per cent a year earlier. All the while, Facebook proper has seen the number of people who access the social network exclusively from their computers slowly dwindling away.
After the company has announced good second-quarter earnings, Facebook stock reaches record high.
Facebook’s monthly active user base is growing.
While Facebook is closing in on the two billion user milestone, Zuckerberg said in a call with investors today the company will focus its efforts in expanding the community. Facebook has warned its investors that in the coming quarters it doesn’t expect as much growth and as a effect the stock is now only up about 5.5 percent.
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Analysts suggest that video could be the next big growth area for Facebook advertising. That’s likely because Facebook pushed ahead on mobile adverts and user growth, and it surpassed Wall Street’s expectations for the second quarter. “I think now we more clearly see why Facebook is able to make all of these investments in virtual reality and Internet access as well as why they haven’t rushed to monetize Messenger and WhatsApp”.
