Shares climbed 9.5 percent to $118.39, during the after-hours trading followed by the news. “We are focused on our 10 year roadmap to give everyone in the world the power to share anything they want with anyone”, he added.
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Non-GAAP net income rose 87% to $2.2 billion, or 77 cents per diluted share, beating analysts’ expectations’ of 62 cents per share.
Advertising revenue also grew almost 60% year over year to $5.2 billion, with mobile advertising revenue representing about 82% of all advertising revenue for the quarter.
Facebook saw active users and revenue rise as the social network reported positive financial results. We now have more than 1.65bn users, and over a billion users each day on mobile.
Daily active users (DAUs) – DAUs were 1.09 billion on average for March 2016, an increase of 16% year-over-year. Under the proposal, Facebook said it plans to issue two nonvoting shares as a one-time stock dividend for each Class A and Class B share held.
When Facebook CEO Mark Zuckerberg said he would give away all of his Facebook shares, many wondered how he would do and still keep the control of the company he founded.
Shareholders will get to vote on the proposal at an annual stockholders meeting on June 20, according to Facebook.
The rejigging of Facebook’s share structure is effectively a 3-for-1 stock split.
In the same period a year ago, Facebook missed expectations with revenue of U.S. $3.54 billion and an EPS of USA $0.42.
“After Intel and IBM last week, and then Twitter and Apple yesterday, this is by far the best number I’ve seen in technology”, said Daniel Morgan, senior portfolio manager at Synovus Trust Company which owns about $40 million worth of Facebook shares, commenting specifically about Facebook ad revenue.
Included in that is a focus on areas such as live video and virtual reality but also evolution in the ways we communicate.
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Mobile monthly active users were 1.51 billion as of March 31, 2016, an increase of 21% year-over-year, while mobile daily active users were 989 million, on average. The company’s hyper-specific targeting capability, its massive user base and its emphasis on video have allowed it steadily grab up more and more of the digital advertising market in the past couple years.
