Facebook blows estimates away with 59% quarterly revenue growth
Shares in the social network climbed 6.7% in after-hours trading following posting
- Advertising money rolls in for Zuckerberg as companies move away from television
- Facebook introduced new video features this year, providing 360 degree viewing and live broadcasts
Updated : 08:57
Social network giant Facebook easily surpassed analyst estimates in its second quarter results on Wednesday evening, with its total revenue growing 59.2% to $6.44bn compared to the corresponding period last year.
The company continues to grow with consistent results from its sister companies Instagram and Whatsapp, with the Facebook Messenger app continuin to bring in high advertising income.
Analysts had predicted that revenue for the quarter would be $400mn lower than what was posted, making it a huge day for Mark Zuckerberg and his company.
The results come after the company reported strong first quarter numbers in April, despite heavy spending on projects such as virtual reality, AI, expanding Internet access globally and hiring thousands of new employees.
The number of active monthly users rose to 1.71 billion, an increase from 1.49 billion in the same quarter last year.
Facing competition from newer apps such as Snapchat which are heavily based in video-related content, Facebook has responded by offering new 360 degree viewing of videos, and live user broadcasts. The advertisers have been streaming in to get involved.
Mobile ad revenue represented about 84% of total sales in the latest quarter, up from 72% in the same period a year earlier. Zuckerberg praised the impact that messaging services has had on the company's growth.
“The scale we’ve achieved with messaging services makes clear that this is more than just a way to chat with friends,” said Zuckerberg, “which is why we are making it easier to connect with groups and businesses as well.”
The company plans to continue venturing into artificial intelligence moving forward, and its chief, who started the site from his bedroom in Harvard in 2004, was keen to stress that this is just the beginning.
“We have a saying here at Facebook: ‘Our journey is only 1% done,'" Zuckerberg said ominously, as Facebook continues its staggering growth towards unprecedented levels.