That’s better than the $6 billion in revenue that analysts surveyed by Thomson Reuters expected from April to June.
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Mobile advertising revenue accounted for 84 per cent of the social media group’s total advertising revenue, compared with 76 per cent a year earlier.
Facebook Inc.’s mobile bet has shrunk the time it takes the social network to leap from one milestone to the next: On Wednesday, Facebook topped $2 billion in quarterly profit, six months after crossing the billion dollar mark for the first time. Its main revenue continued to come from advertisements, which Facebook executives extolled for “engaging” users rather than repelling them.
That’s more than the combined population of the US and China – a market that Facebook hasn’t even cracked yet. Daily active users were 1.13 billion on average for June 2016, marking a 17 percent increase year over year.
With a total revenue of $6.44 billion and a net income of $2.05 billion, the social giant surpassed the analyst prediction of $6.02 billion. While Facebook stumbled with its natural language Graph Search, it refocused on keywords, and is now seeing 2 billion searches per day, compared to 1.5 billion in July 2015, and 1 billion in September 2012.
Revenue generated from mobile ads jumped 80% in the second quarter, faster than Facebook’s overall 59% advertising growth rate.
Elsewhere, Facebook announced that it now has 1.7 billion monthly active users, an increase over 15 percent over past year.
Facebook has also broadened its reach of ads to nonusers.
The company did not break out how many advertisers pay for ads on the social network, though Zuckerberg did differentiate Facebook’s approach to video ads from Google’s.
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But Morgan Stanley’s Brian Nowak wrote in a note to clients on Monday that he didn’t believe Snapchat’s surge was cutting into Facebook’s daily active user growth and engagement. More people are looking to “share more privately”. Excluding certain expenses, the company earned 97 cents per share, topping analysts’ estimates of 82 cents per share. Zuckerberg this summer outlined a five-year blueprint that includes heavy investment in virtual reality, artificial intelligence and expanded messaging services that all aim to make Facebook the go-to portal for everything online. Video is “one of the big things that if we get right I think it’s going to unlock a lot of sharing and opportunity”, Mr. Zuckerberg said.
