Facebook profits rocket 71% as ad revenue continues to drive growth

The Mark Zuckerberg-owned company said profits rose to $3.9bn for the three months ending 30 June when it released its latest earning report after the bell on Wednesday.

Revenues jumped to $9.3bn during the period, representing 45% more than the corresponding quarter in 2016.

Advertising revenue continues to reign supreme for Facebook, with 98% of the social network’s income arriving through advertising companies.

The platform now has over two billion monthly users, with advertisers keen to tap in to that market to display their products and services.

Facebook is currently looking into ways it can monetise its other social media services such as Instagram and Whatsapp.

The platform now has over two billion monthly users

Zuckerberg’s company faces increased competition from the likes of picture messaging app Snapchat, which said on Wednesday it had passed over one billion daily active users.

Facebook’s DAUs was reported to be 1.32bn in its quarterly statement.

"We had a good second quarter and first half of the year," Zuckerberg said. "Our community is now two billion people and we're focusing on bringing the world closer together."

Shares in the tech giant were boosted 4.5% in post-market trading on Wednesday to $173, a record high for the company.

Citigroup analysts were highly impressed with Facebook's Q2 numbers, and see scope for further growth as it delves further into video technology.

"We continue to believe that investors underestimate the impact that video products (content & ads) will have on FB’s earnings over the medium- to long-term, and for these reasons we are raising our Price Target to $200," Citi said in a research note.