Facebook has had a massive third quarter with earnings of over $7.01 billion in revenue and $1.09 earnings per share. The company has 1.79 billion monthly users which represents a 16 percent year over year which represents a growth rate of 4.67 percent for this quarter.
This represents a speed up from the last quarter when the rate stood at 3.63 percent. The daily active users for the quarter also rose from 1.18 to 1.13 billion from the last quarter. The company also announced that they had reached a new monthly user target of 1.055 billion mobile only users.
The numbers which were announced by Facebook completely destroy any of the estimates that analysts had predicted for the company. Analysts had estimated that the company would make $6.92 billion in revenue and have a $0.97 earnings per share. However, despite the news, the Facebook share price is still down because the company notes that they have been hitting the maximum ad load which means that their revenue growth might decrease soon.
Summarizing up the progress the company has made, the company’s founder, Mark Zuckerberg said that the company had had another good quarter. The company beat their earnings target since they made the IPO. The only anomaly was one quarter when currency fluctuations affected every other tech company at Silicon Valley and across the globe.
The mobile division now makes up about 84 percent of the company’s ad revenue and the figure has risen from the same quarter period of last year figure of 78 percent. The figure also means that of the company’s $6.8 billion, they made $5.7 billion from the ads alone.
The company also managed to bring up $2.379 billion in profit which is an impressive rise from $2.05 billion in the last quarter. It’s also up 160 percent year by year. The expenses incurred at the company also rose to $1.1 billion.
At the moment, the company has $26.14 billion in cash reserves, equivalents and securities, just in case. The company’s revenue was up by 59 percent, which is good compared to rival social media network, Twitter which had a 10 percent year over yet revenue growth.
The company might have been having a good financial year, but press and media wise they have had a tumultuous time. The company was criticized for censoring the picture of the naked Vietnamese girl in The Terror Of War photo. The company also clearly refuses the tag of a media company even though they can influence algorithms and content policies with their news.