Facebook revenue soars as mobile advertising sales boom

Pierre Vaugeois
Juillet 29, 2017

WhatsApp reached the one billion active monthly user milestone a year ago, and now has 1.3 billion monthly active users, most of whom use it daily, according to WhatsApp.

Facebook now has more than 2 billion regular users, and has been squeezing more ads into its Facebook News Feed and adding more ads to its photo-sharing app Instagram, which has more than 700 million users.

Analysts expected earnings per share of $1.11 on revenue of $9.2 billion. Now, the app has 1 billion active users per day and 1.3 billion users monthly, which is an astronomical rise.

Analysts on average had expected earnings of $1.13 per share.

98 percent of Facebook's money comes from advertising, and 87 percent of all ad revenue for the quarter came from mobile.

Earlier today, Facebook made public their earnings for the second quarter of 2017. The company has 1.32 billion daily active users, also up 17 percent. It now has over 20,000 people on staff and spent almost $2 billion on research and development this past quarter, up 30% from a year earlier.

The company in a blog post said "Just previous year, we shared that one billion people around the world use WhatsApp every month". "We are humbled that so many people are using these new features to connect with one another in their own special way".

The company is also accelerating its push into the video market, an effort that is aimed at taking away advertising dollars from the conventional television industry while increasing time that users spend on its Facebook site.

But much like revenue-over 98% of which comes from selling ads-quarterly new user growth has fallen sharply since its heights in 2011. The company made a revenue of $9.32 billion despite a slower user growth.

Chief Operating Officer Sheryl Sandberg said brands were experimenting with different advertising formats within Facebook's platforms, for example Tropicana had found that six-second ads gave better results than longer versions, she said.

Facebook continues to grow at a spectacular rate considering its size, but has also begun to warn that it can't keep up this pace. Earlier this month, Facebook said it would be expanding Messenger's home screen ads beta around the globe.

Messaging is "not a near-term overall Facebook growth driver", he said.

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