Facebook's revenue soars, monthly users total hits 1.7 billion
- Author: Marlene Weaver Aug 01, 2016,
Aug 01, 2016, 1:34
The social network reported massive growth across the board, with total revenue spiking by 59 per cent year on year to $6.4 billion (£4.85 billion). Mobile monthly active users reached 1.57 billion, up 20 percent year-over-year.
It is also courting advertisers to experiment with Facebook Live, its recently launched live video feature. Mobile DAUs averaged 1.03 billion in June 2016, an increase of 22%.
Driven by mobile ad sales, Facebook raked in $6.4 billion in the second quarter, up 59 percent from the same period a year ago. There is only one stat that is yet to cross a billion, the mobile monthly-active users.
Twitter said that it had 313 million monthly active users in its report, less than a fifth of Facebook's population.
Even before seeing the results, market analysts have anticipated that the social media giant will report second-quarter earnings that show growth due to the increasing number of active users and higher ad revenues.
Shares of the social media giant climbed almost 7% in after-hours trading. With an increase in users, Facebook also saw its profit skyrocket.
Facebook has yet to say how much money Instagram makes, but research firm eMarketer predicts it will make $1.5 billion in revenue this year. It also posted earnings per share of $0.97, which beat expectations of $0.82.
According to eMarketer, Facebook will command almost 68% of social media ad dollars around the globe this year.
During the second quarter, Messenger hit the billion user mark, making it ripe for major monetization, according to CEO Mark Zuckerberg.
First and foremost, Facebook demonstrated that its social network platform is still attracting plenty of users.
The earnings performance stands in stark contrast to Twitter, which delivered a big miss on revenue and guidance on Tuesday.
This is Facebook's 16th best out of 17 quarters since it went public at $38 per share, Tech Crunch reported.
"Our community and business had another good quarter", Mr Zuckerberg said of the results.
Facing competition from newer apps such as Snapchat which are heavily based in video-related content, Facebook has responded by offering new 360 degree viewing of videos, and live user broadcasts.