In the second quarter, Facebook added 60 million monthly users to reach 1.71 billion, while daily active users reached 1.13 billion, up 17% for the year.
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But when the United States 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. Mobile monthly users increased 20% to 1.57 billion and mobile daily users rose 22% to pass the 1 billion threshold. And mobile-only users continue to increase as well.
Facebook is adapting better to the shift towards mobile and video than social media rival Twitter Inc, which reported its slowest quarterly revenue growth in three years on Wednesday. This is up from mobile’s 72% share of total ad revenue just one year prior.
Facebook crushed Wall Street’s earnings estimates for the second quarter, reporting its fastest rate of revenue growth in two years and reaching the milestone of 1 billion daily mobile users.
Advertising dollars are following Facebook’s increasingly mobile audience.
Our thanks to investment research platform Seeking Alpha for the transcriptions from Facebook’s July 27 Q2 earnings call. This past quarter, it officially shelved its FBX ad exchange and LiveRail programmatic video ad exchange. “Creating a business page on Facebook is as easy as setting up a personal profile – this is why Facebook pages are the mobile solutions for numerous 60 million businesses using our products each month in the US and around the world”.
It is also courting advertisers to experiment with Facebook Live, its recently launched live video feature. This could be a reference to the various mixed reality headsets that are in the works, such as Microsoft’s HoloLens and Magic Leap, though Zuckerberg didn’t mention these by name.
“Facebook is actually, and social media in general, are the most diverse forms of media that are out there”, the CEO told one analyst.
Facebook’s community continues to grow at a respectable clip.
That means Facebook is about to max-out the number of adverts it is able to show users online. The figure is impressive following Q2 2015 revenue per user of $2.5.
“Over a third of small businesses and medium businesses in the US don’t have a website, and having a mobile presence is even more hard and expensive”, she said.
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Its shares were up 5.4 per cent in after-hours trading at US$130.01, after hitting their highest level since the company went public in 2012. Facebook will need to strategize ways in which to lure advertisers to its platform and away from competing players, mainly Snapchat. And Facebook is expected to keep up the momentum for the foreseeable future.
