World’s largest social networking giant Facebook Inc. announced its fourth quarter revenue which was above expectation as the company registered record revenue on the back of more ads via videos, mobile devices and the Instagram photo-sharing service.
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Facebook said it earned $3.69 billion on $17.93 billion in revenue in 2015, which is up 44 per cent year over year.
This will come as no surprise given that Facebook had 1.44 billion monthly users on mobile devices in December 2015, an increase of 21 percent year on year.
Facebook said its daily active users were 1.04 billion on an average for December 2015, an increase of 17 per cent year on year.
In a statement, Facebook co-founder and CEO Marc Zuckerberg said, “Our community continues to grow and our business is thriving”. Apart from focusing on mobile, Facebook has been investing in other areas such as virtual reality, artificial intelligence and drones to connect the remotest parts of the world to the Internet.
Facebook shares are spiking today, and were up as much as 13 percent after the company reported its fourth-quarter earnings. The company reported saw total monthly active users (MAUs) at about 1.59 billion by the end of the quarter.
Facebook’s strong quarter contrasted with a disappointing performance by Apple Inc, which is worth about US$519bil (RM2.14tril), making it the most valuable United States company.
The new features don’t just keep people on the site for longer, they help Facebook learn more about its users. Google’s share shrank from 32 percent in 2014 to 30 percent a year ago.
Analysts surveyed by Thomson Reuters were expecting adjusted earnings of 68 cents per share and revenue of $5.37 billion.
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The company said 500 million people watch 100 million hours of video on Facebook every day – a trend that will be boosted as Facebook develops products for tracking live events on its application.
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Revenue from Asia jumped 19 percent from the prior quarter to US$846 million, accelerating from an increase of 14 percent in the third quarter, the report said. Those are the kind of success stories Facebook will take to other advertisers as they continue to offer stronger targeting for Instagram ads.
