Facebook (FB) released their Q 2016 earnings report on Wednesday after the market closed. The social media giant surpassed analyst expectations and company forecasts to post another record quarter for the company.
Revenue and earnings both surpassed expectations, as the company’s stock rose 5.6% to hit historical highs in afterhours trading.
The company’s key performance areas to focus on in the report are:
Facebook’s user growth continues to impress investors, with year-over-year growth of 15%. The social media giant now has 1.71 billion monthly users. The company’s daily active users have grown by 17% on the year, with 1.13 million people active on the site daily.
Mobile user growth rose 20% year-over-year, with 1.57 billion mobile users on the site. Daily mobile users reached 1.03 billion, marking a growth of 22%. The company’s mobile growth has led to a focus on mobile users in recent years.
Facebook has been able to grow their average revenue per user by 33%, up to $3.32 during Q2 2016. The figure is impressive following Q2 2015 revenue per user of $2.5. Mobile advertising and growth are attributed to the strong growth figures.
Mobile ad revenue accounted for 84% of the advertising sales for the company, up from 76% in Q2 2015.
Revenue grew a staggering 59% when compared to the same quarter a year prior. Facebook posted $6.24 billion in revenue on the quarter, up from $4.04 billion the previous year. Expenses grew by 33%, as the company is focusing on growth and expansion.
Profit margins increased by 31% – 34%, offsetting the company’s growth expenses.
Earnings per share skyrocketed by 184% $0.71, up from $0.25. The company’s focus on mobile growth and video are the main factors behind the record quarter for the company.