The social media giant is expected to generate US$31.94 billion in mobile ad revenue globally this year, up 42.1 percent from a year earlier, research firm eMarketer said. Its diluted EPS is up 73 percent year-over-year, while revenue is up 49 percent.
Advertising revenue, Facebook’s primary source of revenue, grew 51% to about $7.86 billion in the first quarter driven by growth in mobile ad revenues across geographies.
Facebook reported $8 billion in revenue and a lion share of came from mobile advertising for the quarter ended March 2017.
The Facebook founder said they have a lot more work to build a global community that works for everyone.
While each social network considers different factors in user count, Facebook has been consistent with its performance, especially with daily active users increasing by 18 percent year-on-year at 1.28 billion.
Facebook has released its latest earnings result, with 1.94 billion monthly active users or MAUs and 76 million new users for Q1 2017.
“Just a couple months after we launched it, WhatsApp Status has more than 175 million daily active people using it”, said Zuckerberg, referring to the Snapchat Stories-like revamp of WhatsApp’s feature for posting your current status.
Chief Financial Officer David Wehner said in a conference call for investors on Wednesday that Facebook was not breaking out Instagram revenue as a separate line in financial reports because Instagram ads are sold through the same interface as Facebook ads.
It will take time for the company to prove that other bets, such as its heavy investment in video and its apps including Messenger can start contributing significantly to revenue in future quarters.
Facebook is closing in on 2 billion users. It looks like the feature has a much greater reach owing to the popularity of Facebook, WhatsApp and Instagram.
Despite Facebook’s significant growth, Google will likely remain ahead due to search advertising. “How the company addresses these and other concerns will be a key factor that determines whether revenue growth continues as strongly in the next few quarters and years as it has in the recent past”.
“We continue to invest aggressively to improve our business and drive value for our community”, Wehner said. For now though, Facebook isn’t allowing any unauthorized advertising, logos, branding, or commerce experiences on its AR platform. We also expect desktop ad revenue growth rates to slow in the third quarter when we begin to lap our efforts to limit the impact of ad blockers.
Working with local law enforcement, Zuckerberg said Facebook was recently able to prevent one community member from acting on his expressed suicidal ideas.