Facebook’s shares have hit a new all time high after it announced a 59.2 percent jump in quarterly revenue.
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Advertising on mobile devices accounted for 84 per cent of Facebook’s $6.2 billion in advertising sales, Wall Street Journal reported.
Meanwhile, Facebook still has several untapped areas for revenue opportunities, including its WhatsApp and Messenger apps, both of which have more than 1 billion users.
During the quarter, the social giant grew to 1.71 billion monthly active users – up 15% from a year ago – while mobile monthly active users grew 20% to 1.57 billion. It also achieved another milestone: 1 billion daily mobile users. Other companies, like Twitter and Snapchat, have also said they will pursue this strategy, which has always been a mainstay of YouTube, Google’s powerhouse video site.
“Facebook remains a top pick for us, given its position as the largest/most engaging mass-reach internet platform for advertisers, unmatched targeting potential, and very potent monetisation formats”, Cantor Fitzgerald analysts said in a research note.
This is Facebook’s 16th beat out of 17 quarters since it went public at $38 per share, Tech Crunch reported.
But when the U.S. company took analyst questions, Chief Financial Officer Dave Wehner said the firm’s ad load will become a relative non-factor when it comes to predicting future revenue growth for the company, starting this time next year. Although, Facebook’s success came from more number of ads on its apps making sure that they do not hamper user activity but moving ahead, the company should maintain a good balance.
The highlight of today’s announcements though was that Facebook’s active mobile users have now crossed the billion mark.
Facebook said it had more than one billion daily active users on mobile at the end of the quarter June 30, up 22 per cent from a year ago. Facebook is doing some early testing on Messenger in particular, but the focus is still on monitoring the communications between businesses and customers, Sandberg said. This past quarter, it achieved $3.82 average revenue per user – up from $3.32 last quarter.
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Total advertising revenue surged 63 percent to $6.24 billion (5.62 billion euros).
