The basis for this estimate uses the average of the earnings per share numbers that the covering sell-side analysts provide. Facebook also said expenses in total came to $2.77 billion, up 82 per cent from the same period a year ago.
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That $2.9 billion in mobile ad revenue is impressive enough considering that advertisers will put the majority of their digital ad budgets this year toward desktop ads, per eMarketer estimates. After the close of the regular session, Facebook reported its second quarter 2015 financial results.
Facebook stock is down a little more than 2 percent in after-hours trading. Daily active users were 968 million on average for June, up 17% from previous year. That user number is up from 1.3 billion in July 2014, meaning that the site alone has grown by 13 percent year-over-year. As of the second quarter, just over three-quarters of its ad sales came from mobile.
Facebook’s continued and steady growth comes as rival Twitter has hit a wall. Worldwide, Facebook’s audience now approaches 1.5 billion users, while the social giant now boasts 1.3 billion mobile users, Zuckerberg said on Wednesday. Facebook posted revenue of $4.04 billion in the period, also topping Street forecasts. “We think the company has a lot of opportunities ahead of it so we want to see them investing quite heavily in those investments”, he said. “We really like the investments that we’re making”. In addition, profit was up 28 percent to $1.4 billion. This would have been $330m higher had it not been for a strong dollar, Mr Wehner added. That represents year-on-year growth of 29 per cent.
Mobile ads accounted for 76 per cent of Facebook’s advertising revenue of $3.83-billion in the second quarter, compared with 62 per cent in the same quarter previous year.
Messenger has more than 700 million users, and the app has been downloaded more than one billion times on Android, Google Inc’s mobile operating system, Facebook said.
Facebook CEO Mark Zuckerberg has long warned that the company would be increasing expenses more quickly than revenue as it moved to grab an increasing share of users’ attention around the world. The company reported better-than-expected results, beating both earnings and revenue expectations.
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Facebook itself has been a rising star in online advertising. That means the company is now serving half the Internet universe with cute animal videos, dancing kids and updates on its users. “The autoplay video product has been great for engagement, we’re seeing people engage with billions of videos each day and that’s growing”. Analysts said that growth is these newer businesses has been significant. Now, WhatsApp’s user base is more than 800 million.
