Most of the company’s third quarter revenue came from mobile ads, which makes up a larger chunk of overall ad sales compared to the same period past year.
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Non-GAAP earnings were $1.09 per share on a revenue of $7.01 billion. Analysts had expected revenue of $6.9 billion and earnings of 97 cents a share on average.
Ever since spurning CEO Mark Zuckerberg’s acquisition attempt, Snapchat CEO Evan Spiegel and Co. have emerged as Facebook’s greatest threat for the next wave of mobile-friendly teenagers.
The number of people using Facebook also continues to rise, with monthly active users of the site climbing 16% on a year ago to 1.79 billion, with 1.18 billion visiting the social network daily.
The company reported that its total monthly active user base grew to 1.79 billion people, up from 1.71 billion people last quarter.
Mobile MAUs – Mobile MAUs were 1.66 billion as of September 30, 2016, an increase of 20% year-over-year. Advertising revenue is typically tied to the number of daily and monthly active users recorded during the quarter. Facebook generated 84 percent of its advertising sales from mobile phones, unchanged from the prior quarter. Until the third quarter, the percentage of Facebook ad revenue that comes from mobile had increased every quarter since the company began reporting the figure in 2012.
Despite the good financial results, Facebook stock traded at $127.17, down 1.8% after hours. Enterprise Financial Services Corp raised its stake in Facebook by 1.2% in the third quarter. “With only a small fraction of businesses on Facebook and Instagram advertising, we have a lot of opportunity in front of us”. The Company enables people to share their opinions, ideas, photos and videos, and other activities.
Ad load is one of three factors that has driven Facebook’s growth as a company, with the other two being user growth and increasing the time users spend looking at Facebook.
Facebook’s suddenly reinvigorated desktop ad revenue business might seem as odd as an aging baseball player turning in one of his best seasons ever in his final season. “Facebook has had a string of very solid quarters and associated positive stock moves, and we are consistently asking ourselves when the beat-and-raise music might stop”, Canaccord Genuity analyst Michael Graham wrote in a recent report to clients. Again there were no exact numbers for the last reported quarter with regard to contribution from Instagram but Facebook said that the platform has now over 500,000 advertisers.
Zuckerberg said that 40 million people now used Internet.org, the company’s free mobile internet service, to get online, up from 15 million previous year.
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Shares of FB surged 45% since hitting a low in late January as quarterly results have consistently delivered higher revenues and profits.
