Wed | Aug 23, 2017

Facebook user numbers grow, beats expectations

Published:Friday | July 29, 2016 | 7:00 AM

The world's biggest social media company handily surpassed Wall Street's expectations for the second quarter, barrelling ahead on mobile advertisements, user growth, and the next frontier - video.

Faceboook Chief Operating Officer Sheryl Sandberg said in an interview that people are spending more time each day on Facebook, on average. The company's focus on video is attracting more attention from users, she said. Facebook has been working to get users to create and watch more videos, from each other, from businesses, and from celebrities.

Facebook had 1.71 billion monthly users as of June 30, up 15 per cent year-over-year. Mobile accounted for 84 per cent of the quarter's ad revenue.

Overall, Facebook Inc on Wednesday said its second-quarter net income nearly tripled, to $2.06 billion, or 71 cents per share, up from $719 million, or 25 cents per share, in the same period a year earlier.

Adjusted earnings were 97 cents per share in the latest quarter, beating Wall Street expectations of 81 cents per share, according to 15 analysts surveyed by Zacks Investment Research.

Menlo Park, California-based Facebook's revenue grew 59 per cent, to $6.44 billion. Eleven analysts surveyed by Zacks expected $6.01 billion.

Facebook has a long tradition of surpassing analysts' expectations with its quarterly earnings. Its shares have increased 18 per cent since the beginning of the year, while the Standard & Poor's 500 index has increased six per cent.

- AP