Facebook has had a stellar Q3, earning $7.011 billion in revenue– the lion’s share of which came from advertising– and $1.09 in earnings per share (EPS). That’s a whopping 56% revenue bump from the $4.501 billion it earned a year ago.
The figures far exceeded estimates from analysts, who had forecast $6.92 billion in revenue and $0.97 EPS for the third quarter, according to Techcrunch.
In September, Facebook hosted an average of 1.18 billion daily active users (DAU), marking a 17% year-over-year increase. It also had 1.09 billion mobile DAUs on average that month, up 22% percent from last year, and reached a new milestone as mobile-only users passed a billion for the first time.
As such, mobile ads accounted for 84% of its total advertising revenue, or $5.7 billion of the $6.8 billion Facebook earned from ads in the third quarter. In all, Facebook raked in $2.379 billion in profit, up a stunning 160% year-over-year.
“We had another good quarter,” said Mark Zuckerberg, Facebook founder and CEO, somewhat drily. “We’re making progress putting video first across our apps and executing our 10 year technology roadmap.”
Despite all of this, news that Facebook’s ad revenues had hit a peak and would taper off significantly struck a sour note with investors. “We expect to see ad revenue growth rates come down meaningfully,” said Facebook CFO David Wehner on the earnings call, which precipitated a steep 7.6% drop in Facebook shares in after-hours trading on Wednesday.
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