dglobalnews.com Facebook's Q4 Earnings Beat Driven By Strong Mobile Performance
Published: Thu, February 02, 2017
Research | By Kayla Price

Facebook's Q4 Earnings Beat Driven By Strong Mobile Performance

Facebook's Q4 Earnings Beat Driven By Strong Mobile Performance

Facebook (NASDAQ:FB) is scheduled to report its fourth quarter results on Wednesday, February 1st. Total advertising revenues surged 53 percent to $8.63 billion.

Mobile advertising revenue represented roughly 84% of all advertising revenue ($8.63 billion) for the fourth quarter, up from 80% of advertising revenue past year.

Perhaps even more impressive: Facebook now has 1.23 billion users who use its service every single day, up 18% from a year earlier.

Of those monthly active users, 1.149 billion accessed Facebook only through mobile apps or mobile versions of its web site. This quarter was no different, with a reported $8.8 billion in revenue and $3.56 billion in profit.

Facebook showed once again how it has become one of the world's biggest media companies.

Mobile advertising represented approximately 84% of ad revenue during the quarter, up from 80% a year ago.

"Our mission to connect the world is more important now than ever", said Facebook CEO Mark Zuckerberg.

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Wall Street was looking for Q4 earnings of $1.31 per share with $8.51 billion in revenue. That's a major increase from the same period a year earlier, when mobile ads accounted for 77% of the company's revenue.

Despite that warning, Facebook's sales have continued to grow at a much faster clip than investors expected.

The world's largest social network now stands at more than 1.86 billion monthly active users (MAU), representing an increase of 17 percent from past year.

Facebook hasn't hit 2 billion users per month, but it's getting pretty damn close.

'We believe concerns over user engagement and other social competitors are likely overblown, as few companies share Facebook's combination of scale, strong technology orientation, and platform breath/diversity, ' Baird research analyst Colin Sebastian said in a note to investors.

Facebook has been adding features to attract more users and retain those already on the network, with a feature to tackle fake news posts being the most recent addition, after the criticism that followed the US election on November 8.

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