Facebook’s revenue rockets on strong growth

Revenue moved up for the quarter that ended on June 30, approximately fifty nine percent to $6.44 billion compared to last year’s $4.04 billion in Q2.

“What is working very well is their very quick shift from desktop to mobility”.

Shares of Facebook Inc.

Year-over-year, daily active users swelled 17% to 1.13 billion, while mobile daily active users were up 22% to 1.03 billion.

Analysts had anticipated revenue of $5.8bn, but the company managed to beat even those high expectations bringing in $6.4bn in revenue.

To maintain its rocket-ship trajectory and to avoid the pitfalls of its counterparts, Facebook said it was also looking ahead and betting on what it hopes will be a major business driver in the years to come: Video and video advertising. Mobile advertising and growth are attributed to the strong growth figures.

Facebook is certainly benefiting from advertisers shifting their cash away from television and towards internet and mobile platforms.

The company claimed to have attracted 100 million new users in the last three months.

But when the U.S. company took analyst questions, Chief Financial Officer Dave Wehner said the firm’s ad load will become a relative non-factor when it comes to predicting future revenue growth for the company, starting this time next year. The social media giant also reported that it now had 1.13 billion daily active users and 1.03 billion mobile daily active users.

There were critics, however, BI reports – including academic Zeynep Tufekci, who argued the research was conducted on “a small, skewed subset of Facebook users”.

Facebook also owns picture-sharing app Instagram, which recently announced it has more than 500 million users.

Meanwhile, 360-degree images and VR content are becoming increasingly important to Facebook too.

Earnings per share skyrocketed by 184% $0.71, up from $0.25.

Total advertising revenue surged 63% to $6.24bn.

According to Facebook, Q2 monthly active users have been 1.71 billion, comparing to only 1.69 billion expected.