Facebook said it had 1.49 billion monthly active users as of June 30, up 13 percent from a year earlier.
Facebook Inc(NASDAQ:FB) announced its quarterly revenue that topped consensus estimate, though its earnings plummeted 9 percent amid sharp surge in spending to increase mobile revenue and drive future growth.
For the quarter, revenue jumped to US$4.04bil (RM10.56bil) from US$2.91bil (RM11.10bil). Mobile advertising revenue represented about 76% of advertising revenue for the second quarter, up from about 62% in the second quarter of 2014.
Apart from mobile ads, Google and Facebook compete in many more areas such as videos, virtual reality, search, etc. Facebook CEO Mark Zuckerberg informed investors during their conference call that the social network now gets 1.5 billion searches a day.
The world’s biggest social network saw higher expenses cut into its bottom line, as it invests in new technologies and seeks to build a “family” of applications.
Mobile ads accounted for 76pc of Facebook’s advertising revenue of $3.83bn in the second quarter, compared with 62pc in the same quarter a year ago.
Facebook shares fell more than 3% in after-hours trading.
Mobile DAUs – Mobile DAUs were 844 million on average for June 2015, an increase of 29% year-over-year.
As a result, Facebook on Thursday reported a Q2 profit of $715 million (652.7 million euros), a 9 percent fall over the same period previous year.
While there’s no question, perhaps the increase in expenses aside, that these are great numbers for Facebook, what the financials don’t do is provide a picture about what specifically is going on at Facebook owned services such as Instagram and WhatsApp; the fact that Facebook loves to talk about users on Facebook the site proper but fails to mention these services isn’t accidental, it’s purposeful, but the mystery is why?
Facebook has remained tight lipped regarding video ad revenues although they claim to receive 4 billion views per day. “We see that as a positive”, said Martin Utreras, an analyst for the research firm eMarketer. The company’s research and development costs were 1.17 billion dollars.
Facebook ended the quarter with 10,955 employees, up 52 per cent from a year earlier. The stock had closed up $1.70 at $96.99, up more than 24 percent for the year.
