Facebook has announced financial results for Q1 2016. The social network has recorded $5.38B in revenue and about 79 percent of that revenue came from mobile advertising.
Facebook’s user base is also multiplying and the platform now has over 1.65 billion monthly active users (MAU) as of March 31, 2016. This is a 15% YoY increase. Meanwhile, daily active users (DAUs) were 1.09 billion, an increase of 16% YoY. On the other hand, Mobile DAUs were 989 million, an increase of 24% YoY and Mobile MAUs were 1.51 billion as, an increase of 21% YoY.
The social network’s mobile advertising revenue represented approximately 82% of advertising revenue for the first quarter of 2016, up from 73% of advertising revenue in the first quarter of 2015. Capital expenditures for the first quarter of 2016 were $1.13 billion while cash and cash equivalents and marketable securities were $20.62 billion at the end of the first quarter of 2016.
Mark Zuckerberg also requested that a new class of stock should be issued, so he can donate money from his shares to charity while maintaining control of the firm he founded.
Advertising revenues rose to $5.2bn, with more than 80% coming from mobile.
Facebook's focus on live video attracted new advertisers, while sales on existing services also grew.
The company said the move would "encourage Mr Zuckerberg to remain in an active leadership role at Facebook".
The results hugely exceeded Wall Street's already sky-high expectations, and Facebook shares rose by more than 9% in after-hours trading.
Going mobile
Sales for the quarter reached $5.4bn, up from $3.5bn last year.
The increased focus on mobile advertising seems to have paid off, rising to 82% of the company's revenues for the first quarter of 2016, up from 73% during the same period last year.
Total monthly active users (MAU) increased 15% from a year earlier to 1.65 billion, beating analysts' expectations.
And each user earned the company more money, an average of $3.32 against $2.50 last year.
Facebook CEO Mark Zuckerberg said in a statement:
Today, Facebook’s board of directors is announcing a proposal to create a new class of stock that will allow us to achieve both goals. I’ll be able to keep founder control of Facebook so we can continue to build for the long term, and Priscilla and I will be able to give our money to fund important work sooner. Right now, there are amazing scientists, educators and doctors around the world doing incredible work. We want to help them make a bigger difference today, not 30 or 40 years down the road.
Edited by: FL Media Pro
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