Facebook in Q2: Mobile Accounts for 76% of Total Ad Revenue

Facebook has also been on a hiring spree this year, adding 873 employees, with most working in research and development. The number is equal to half of the estimated three billion people who use the internet worldwide.

As video views grow on Facebook and the company ramps up advertising on Instagram, analysts expected strong results from the social networking company. 844 million users access Facebook per day with their mobile devices.

“We’re investing in the next set of services and what will be future investments like Messenger, WhatsApp and Oculus”, Chief Operating Officer Sheryl Sandberg said in an interview on Wednesday after the earnings report.

But given Twitter’s problems earlier in the week, where it admitted user growth is desperately slow, and the fact that Facebook, the world’s biggest social network, is still piling on new users is absolutely remarkable.

The company has also gradually begun putting more ads in its photo-sharing app Instagram, which the company acquired in 2012. “Engagement across our family of apps keeps growing, and we remain focused on improving the quality of our services”.

Mark Zuckerberg could be forgiven for cursing Wall Street under his breath. Expect to see growth in mobile advertising revenues. In the year-ago period, net income totaled $791 million, or 30 cents per share. Mobile ad revenue now makes up a whopping 76 per cent of all of Facebook’s ad revenue, which experienced a 3 per cent jump from last quarter, while users accessing from a mobile device spiked 23 per cent from previous year.

But Facebook’s spending spree hasn’t stopped its stock from rising 24.3 percent this year.

The stock closed at $96.99 on Wednesday and slipped by around 2% after the news. The latter figure, by the way, represents a 13 percent increase over a year ago, so it’s clear that the Menlo Park, Calif.-based company isn’t losing momentum in that department.

Its second quarter earnings have crossed analysts estimate with $4.04 billion in revenue and $0.50 earnings per share (EPS).

The success story was even bigger for Facebook’s mobile ad business, where revenue rose 62 percent to $2.9 billion.

Facebook also changed the way it charges advertisers this quarter, allowing them to choose to pay only when a user actually clicks a link to their brand’s website or app.

The company’s advertising revenue for the second quarter surged 43% year-over-year to $3.83 billion and constituted almost 95% of total revenue.