Facebook Announces 52% Revenue Increase & 21% User Increase YOY

Facebook Announces 52% Revenue Increase & 21% User Increase YOY
SHARE
THIS



Facebook earnings have smashed through market estimates, embarrassing analysts whose wildest dreams still underestimated reality. In a week when Twitter and Apple disappointed on their quarterly earnings calls, the Book of Face exceeded Wall Street’s highest estimates for earnings per share by 10 percent.

The stellar results reflected not just domination of mobile advertising, but an utter domination of the entire social space.

Mark Zuckerberg credited long bets on mobile and acquisitions such as Instagram for the big win. He acknowledged that the move away from desktop, and the massive punt on blue sky schemes like virtual reality were “very controversial initially,” but he insisted they were “good decisions for our community and our business.”

“Facebook has been built by a series of bold moves, and when I look out at the future I see more bold moves ahead of us than behind us,” Zuckerberg said.

Revenue boomed, and monthly active users increased 21 per cent year over year, in contrast to Twitter which showed some growth, but offered revenue guidance well below expectations. The micro-blogging service warned that its previously healthy income stream from big brand ads appeared to be drying up.

Meanwhile ad revenue at Facebook soared on the back of greater engagement.

Zuckerberg told analysts that sharing on Facebook had increased overall, with users spending more time on its various apps, both as a whole community and on a per person basis.

The market had factored in revenue growth of 48 per cent and was caught flatfooted by the surge to 52 per cent year over year. Almost all of the growth came from advertising, which delivered $US5.02 billion, up from $US3.54 billion last year.

Most of the ad revenue flowed from mobile; 82 per cent for the quarter, an increase from 73 per cent in the same quarter of 2015. This is evidence of a stunning turn around for a company which initially struggled to escape the desktop. COO Sheryl Sandberg said that more than 3 million businesses were actively using the network’s ad products, with 200,000 also selling on Instagram. The photo sharing service is almost virgin territory for Zuckerberg when he goes hunting for new profits.

Chief financial officer, David Wehner, identified mobile news feed ads as the big driver of growth. His boss pointed to video as another potential gold mine. ”We’re at the beginning of a golden age of online video,” said Zuckerberg.

There was one bright spot on the desktop. Apple’s flat hardware sales contrasted markedly with the crashing fortunes of Wintel manufacturers. In desktop, even stagnant counts as a kind of growth.

This article originally appeared on B&T’s sister business site www.which-50.com

Please login with linkedin to comment

Latest News

Adobe MAXes Most Creatives In A Room Record
  • Advertising
  • Media

Adobe MAXes Most Creatives In A Room Record

With more than 12,000 registered attendees, Adobe has blitzed the record for the most number of creative people gathered together in one room at its MAX conference in Las Vegas overnight. Adopting a somber tone early in his presentation, Adobe CEO Shantanu Narayen offered his condolences to the victims of the mass shooting, which took […]

Opinion

by David Hovenden

David Hovenden
Fraud & Faulty Programmatic Will Force Brands To Take Media In-House
  • Media

Fraud & Faulty Programmatic Will Force Brands To Take Media In-House

A growing number of marketers are taking back control of their digital marketing campaigns as more cases of fraudulent and waste in programmatic spending emerge across the world. Mr Jay Shah, CEO of artificial intelligence group, OpenDNA, marketers were taking back control of critically important processes like customer targeting, as many digital and programmatic advertising, […]

Cricket Australia Unveils Ashes Fan Campaign #BeatEngland
  • Campaigns

Cricket Australia Unveils Ashes Fan Campaign #BeatEngland

With an Ashes summer rapidly approaching, Cricket Australia has put out a rallying cry to fans around the country to get behind our Australian women’s and men’s cricket teams under the banner #BeatEngland. The #BeatEngland campaign is built upon a simple truth – nothing brings Australia together like the prospect of seeing our cricketers beat […]

Sydney Start-up Muzaara Partners With Commission Factory To Turbocharge Digital Ad Spends
  • Advertising
  • Marketing

Sydney Start-up Muzaara Partners With Commission Factory To Turbocharge Digital Ad Spends

Sydney-based adtech start-up Muzaara has announced a new strategic partnership with performance marketing platform Commission Factory. Together, Muzaara and Commision Factory are providing SMEs with a secret weapon to skyrocket their online brand visibility and effectively manage and maximise their online advertising campaigns. This partnership will allow both online marketing companies and their impressive roster […]

Kellogg’s Creates AR Halloween Trick Or Treat Experience Via Shazam & Orchard
  • Campaigns
  • Marketing
  • Technology

Kellogg’s Creates AR Halloween Trick Or Treat Experience Via Shazam & Orchard

Breakfast cereal manufacturer Kellogg’s has joined forces with Shazam and digital agency Orchard to deliver a first-of-its-kind augmented reality (AR) Halloween Trick or Treat experience for families. The campaign, which leverages Shazam’s visual recognition platform and recently-launched AR platform, sees Kellogg’s pilot the replacement of physical gifts in cereal packs with a digital experience that […]

Kraft Heinz Appoints Cummins&Partners As New Creative Agency
  • Advertising

Kraft Heinz Appoints Cummins&Partners As New Creative Agency

Kraft Heinz today confirmed the appointment of Cummins&Partners as its new Creative agency after an extensive pitch process. They will be responsible for brand strategy and integrated creative across the expanding Kraft Heinz portfolio including Kraft, Heinz and Golden Circle. A Kraft Heinz spokesperson said: “After an exhaustive search involving a competitive pitch, we have made […]

Patrick Delany (CEO, Fox Sports), Hugh Marks (CEO, Nine Entertainment Co), Miranda Devine (Columnist, News Corp), Michael Miller (Executive Chairman, News Corp Australasia), Grant Blackley (CEO & Managing Director, Southern Cross Austereo) at Radio Alive 2017
  • Media

Media Bosses Weigh In On Ten-CBS Deal

Do you enjoy articles featuring industry big-wigs? Well, it doesn't come much bigger and wiggier than this, we say.

by B&T Magazine

B&T Magazine
Kantar TNS’ Ali Dexter Joins T Garage As Director Of Insights & Strategy
  • Marketing

Kantar TNS’ Ali Dexter Joins T Garage As Director Of Insights & Strategy

Melbourne-based market research consulting agency T Garage has announced the appointment of Ali Dexter as its director of insights and strategy. Dexter joins T Garage from Kantar TNS, where she was the director of its Qualitative division. Prior to that, Dexter held a number of senior roles at Kantar TNS in the US and Vietnam.  “After […]

XXXX on Tuesday, March 21, 2017, in Las Vegas. (Jeff Bottari/AP Images for Adobe)
  • Advertising

Adobe Releases Advertising Cloud App

Not one, but two Adobe announcements. The tech elves have been busy this week, not that we're inferring Adobe is Santa.

Facebook Updates Its VR Offering
  • Technology

Facebook Updates Its VR Offering

Do you loathe Facebook for nicking all the ad cash? Well, why not scream "A pox upon you Zuckerberg" while reading this.

InterContinental Perth City Centre Chooses Bonfire To Build Digital Strategy
  • Marketing

InterContinental Perth City Centre Chooses Bonfire To Build Digital Strategy

Luxury hotel InterContinental Perth City Centre is officially set to open this Sunday, and has already taken strides towards developing a comprehensive online search strategy with digital agency Bonfire. The investment reinforces the desire of the hotel to promote its luxury business facilities, which include corporate and bespoke event spaces designed for local, national and […]

Datalabs Announces New Hire And Promotion
  • Marketing

Datalabs Announces New Hire And Promotion

Aussie data visualisation and content marketing analytics agency Datalabs has announced the appointment of Marc de Chellis to run its business development, as well as the promotion of Cass Lilley to accounts and project manager. De Chellis (pictured above, second from the left) joins Datalabs from Launchpad App Development, where he held the role of […]