Facebook’s Second Quarter Earnings Beat Expectations; Share Prices Soar

In the next year, Facebook’s revenue will probably top US$26 billion – even more – while the revenue growth in every major media company slows or falls (in the case of print).

In April, Facebook came out with strong first quarterly reports in spite of heavy spending on some longer-term projects involving new hiring, artificial intelligence, virtual reality and expanding global Internet access.

The net income of the second quarter jumped to $2.06bn, or 71 cents per share, from $719m or 25 cents.

Facebook had 1.13 billion daily active users across desktop and mobile in June of 2016, compared to 968 million during the same month past year. “We’re particularly pleased with our progress in video as we move towards a world where video is at the heart of all our services”, he said.

Facebook crushed earnings again on Wednesday, delivering the fastest rate of revenue growth in two years, a whopping 59%.

Mobile was the biggest driver of Facebook’s advertising revenue, accounting for about 84 percent of that $6.2 billion.

Facebook handily beat analyst expectations during its most recent quarter, raking in US$6.44 billion (S$8.7 billion) in revenue during three months that ended June 30.

Facebook is now used by more than 1.7 billion people every month, the United States social network’s latest financial results revealed.

Since Facebook went public four years ago, the company’s stock price has more than tripled. According to The Verge, Facebook reported $6.44 billion in revenue and $2.05 billion in profit. Facebook has warned its investors that in the coming quarters it doesn’t expect as much growth and as a outcome the stock is now only up about 5.5 percent.

Daily active users also grew – to 1.13 billion, an increase of 17 percent.

Facebook has had another exceptional quarter for growth with profit up 186 per cent year on year.

Shares of the social media giant climbed almost 7% in after-hours trading.

Facebook is also making more revenue per user than at any point in its history.

Facebook Messenger recently hit 1 billion users and Instagram has more than 500 million users. That’s compared with its previous forecast for organic sales growth of 4 percent to 5 percent. This further solidifies Facebook as the world’s largest social network.

But Wehner said the company does not plan to monetise them any time soon, and that it is instead focused on building interactions between businesses and users on the apps.