During the second quarter earnings call following the close of markets, shares of Facebook soared more than 6 percent in after-hour trading to top $131.
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The number of monthly active users increased 15% to 1.71 billion, while the number of mobile monthly active users grew 20% to 1.57 billion.
Facebook has now exceeded earnings expectations in 16 of its 17 reports since the company went public in 2012.
“Our community and business had another good quarter”, Mr Zuckerberg said of the results.
“We’re particularly pleased with our progress in video as we move towards a world where video is at the heart of all our services”, Zuckerberg said.
Mobile advertising revenue represented approximately 84 percent of advertising revenue, up from about 76 percent of advertising revenue a year earlier.
Many analysts were focused on two questions about Facebook leading up to the report: Instagram and mobile app-install ad revenues.
Deutsche Bank analyst Ross Sandler has expressed concern that the success of Snapchat is cutting into Instagram engagement. Instagram has more than 500 million monthly active users. Ad revenue was $6.2 billion, rising from $3.8 billion past year, while Payments and Other revenue declined to $197 million.
Not only does Facebook have more users to make money off of – it’s also making more money off each one of them on average. Last quarter, this space accounted for 82 percent of the company’s revenue, a 9 percent increase from the year prior. And if that’s not enough, there are 1.13 billion people using the social network every single day, on average. WhatsApp is the second largest and Facebook Messenger is the third, both owned by Facebook. “It’s a must do, and we’re working closely with marketers to make this transition”.
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Seven summonses Meanwhile, Facebook officials failed to show up after getting seven summonses from the US Internal Revenue Service demanding internal corporate records on one of its offshore tax strategies, according to an IRS court filing. Messenger, like WhatsApp, recently topped 1 billion users. Many analysts predict the app’s revenue will hover around $2.5 billion this year.
