Facebook announced its third quarter earnings after the market closed today, and while it reported $3.4 billion in mobile advertising revenue for the three month period that ended in September, overall advertising revenue amounted to $4.3 billion.
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Net profit for the quarter is stated to be $896 million, up from $719 million in Q2 2015.
While capital expenditures for the third quarter of 2015 were $780 million, cash and cash equivalents and marketable securities were $15.83 billion at the end of the third quarter of 2015, the statement read.
Of the 1.55 billion users active each day, 1.39 use their mobile devices to log in to Facebook.
On that note, it’s little surprise Facebook is pushing all of its new features to mobile first, considering 78 per cent of all the advertising income it generates is coming via mobile.
Total revenue jumped to $4.50 billion in the third quarter, from $3.20 billion a year earlier. Facebook has added four million users in its money-making core market of the USA and Canada.
The company revealed 1.55 billion people now use Facebook each month, up from 1.49 billion.
The company also hopes to generate more advertising revenue from Instagram, the photo-sharing app it purchased in 2012 for $1 billion, which has recently expanded its marketing products.
Facebook founder Mark Zuckerberg welcomed the results and said the firm would continue its focus on growing video.
Facebook used to be criticized for not having a solid mobile strategy, but those days seem to be long gone.
“We’re focusing on innovating and investing for the long-term to serve our community and connect the entire world”, Zuckerberg says.
Facebook said its ad business now generates $10.49 per user in Canada and the US.
Spending on video ads has tripled this year compared to 2014 and total ad revenue reached $US4.29 billion, up 45%.
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On top of all this, Facebook also reported healthy new user growth. Those views come from the 500 million users who are watching videos every day.
