Mark Zuckerberg

Facebook’s ‘good’ quarter means ad revenue jumps 67%

Total users hits 1.32 billion, with 829 million on every day

Facebook is on a roll. The world’s largest online social network posted sharply higher earnings on Wednesday as revenue from mobile advertising continued to grow, along with its user base.

Facebook Inc. said Wednesday that it earned $788 million, or 30 cents per share, in the April-June period. That’s up from $331 million, or 13 cents per share, in the same quarter a year ago.

Adjusted earnings were 42 cents per share, handily beating Wall Street’s expectations of 33 cents, according to a poll by Zacks Investment Research.

Facebook’s revenue jumped 61% to $2.91 billion from $1.81 billion in the same quarter a year ago. Analysts expected $2.8 billion. This was the fifth quarter in a row that Facebook beat Wall Street’s forecasts.

Advertising revenue jumped 67% to $2.68 billion. Mobile ad revenue, a closely watched figure, was 1.66 billion, or 62% of Facebook’s total advertising revenue for the quarter. In the first three months of the year, mobile ads accounted for 59% of Facebook’s total ad revenue.

The steady increase indicates that Facebook is succeeding in steering advertisers to its mobile platform at a time when most of its users are using mobile devices to access the social network.

Facebook had 1.32 billion active users at the end of June, up 14% from a year earlier. On average, 829 million people used Facebook every day in June, up 19% from a year earlier. The number of people who log in at least once a day on mobile devices was 654 million on average in June, up 14% from a year earlier.

“We had a good second quarter,” said CEO Mark Zuckerberg in a statement. “Our community has continued to grow, and we see a lot of opportunity ahead as we connect the rest of the world.”

Shares of the Menlo Park, California-based company have climbed $16.64, or 30%, to $71.29 since the beginning of the year, while the Standard & Poor’s 500 index has climbed 7.5%. The stock has more than doubled in the last 12 months.

Media Articles

Facebook discloses error on instant articles

comScore finds that iPhone traffic went under-reported for approximately two months

Yahoo faces possible Canadian class action suit

$50-million filing made Friday over compromised user info

The List: Maxus Canada makes a winning change

How a new structure helped propel the media agency to 18% growth in 2016

The biggest stories in Canadian marketing: 2016

A look back at the most read and shared news items from MarketingMag.ca

Amazon brings its video streaming service to Canada

Prime members get access to 'Transparent', 'The Grand Tour' and more

How we can close advertising’s biggest gap

AOL's David Shing on how companies can bring more empathy to advertising

The List: Wattpad’s evolving influence

The first of our selections for the biggest newsmakers of 2016

The case for companies staying off social media

It takes real commitment and, for many, it's just not worth the trouble

KitchenAid’s gingerbread social spectacle

A social media strategy for the holiday season pops up in Toronto