Facebook profit surges 76.6 percent as ad sales jump

Audrey Hill
May 4, 2017

Facebook Inc FB.O reported a 76.6 percent surge in quarterly profit on Wednesday, fueled by robust growth in its mobile ad business.

Facebook reported earnings per share of $1.04. The social media giant is expected to generate $31.94 billion in mobile ad revenue globally in 2017, a 42.1 percent jump from a year earlier, according to research firm eMarketer.

The company generated net income of $3.06 billion, up 76.6% vs the period previous year, on revenues of $8.03 billion, up 49.2%.

Oh, and by the way, Facebook stock is down slightly in after hours trading.

Trees don't grow to the sky, but Facebook doesn't seem to know that truism based on the strong results it just disclosed in its Q1 report.

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EMarketer estimates that Facebook will generate $36.29 billion in net digital ad revenue in 2017, up 35% from past year.

Facebook is no longer reporting non-GAAP expenses, income, tax rate, and earnings per share (EPS).

Most of Facebook's revenue came from advertising, with ad revenue rising 51 percent to $7.86 billion, above a $7.67 billion consensus. "We're continuing to build tools to support a strong global community". About 85 percent of ad revenue came from mobile in Q1, up from 82 percent in Q1 2016.

Facebook said about 1.94 billion people were using its service monthly as of March 31, up 17 percent from a year earlier. It took the company eight years to hit 1 billion monthly users, but now it appears it'll take five to get to 2 billion. He said that the main drivers for revenue growth going forward will be Instagram and video ads, although the company's midroll video ads are still in their "earlier days" of testing.

Other reports by MaliBehiribAe

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