Facebook has posted a revenue increase of 39 per cent in its second quarter earnings, however expenses from the social media platform increased by 82 per cent.
The increase in the expenses weighed on the stock exchange, with Facebook’s shares falling by 2.2 per cent, according to The Wall Street Journal.
The results encompass the three months ending June 30. The revenue increase was $US4.04 billion, from $US2.91 billion in the same quarter last year.
The results surpassed expectations from Yahoo analysts, suggested US publication Forbes, which projected the revenue to be $US3.99 billion.
It was Facebook’s mobile ad business that was the massive scorer for the company, with the ad revenue from mobile growing 74 per cent year over year.
Forbes reports the expenses from Facebook were valued around $US2.8 billion, up 82 per cent from this time last year.
“That was due in part on increased hiring, especially for research and development roles, as well as on investments in data centres, artificial intelligence, virtual reality and a company project to expand global internet access,” writes Forbes staff Kathleen Chaykowski.
“Facebook said in April that costs and expenses would likely rise as much as 65 per cent this year.”
Facebook also trumpeted its usage and engagement rates in the results, claiming the daily active users were up 17 per cent year on year to 968 million in the second quarter.
The daily active users on mobile are now up to 844 million for June 2015, an increase of 29 per cent year on year.
Across Facebook’s platforms, including Facebook itself, Instagram and the Messenger app, saw people spending 46 minutes a day on them on average.
For all the extra detail, here’s a handy info graphic for your visual devouring pleasure.
Video is becoming a main focus for Facebook, with the results claiming billions of videos are viewed on the platform each day, with three quarters of them on mobile.
In the local market, to enhance the video offering and capabilities, Facebook Australia has hired two new guns. Daniel King has been appointed as head of media planning and Kenny Griffiths as head of video.
Commenting on the hires, Ellie Rogers, head of agency, Australia and New Zealand said: “Facebook video is now a growing part of the broadcast pie. More and more CMO’s and agencies are talking to us about their challenges in using traditional broadcasters to reach their audiences.
“Over the last year the number of video posts on Facebook has increased by over 50 per cent in Australia. We believe that our scale provides a solid solution to the industry’s challenges around reach, whilst at the other end of the spectrum our targeting capabilities can reach real people and measure all the way through to the store. To respond to this demand we have created these two new roles.
“Daniel is already playing a critical role in helping brands leverage the Facebook platform, whilst Kenny will boost our video strategy offering to clients across AUNZ.”
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