Facebook revenue beats estimates as mobile ad sales surge | Reuters

Facebook Inc ( FB.O ) reported a better-than-expected 51.9 percent rise in quarterly revenue as its increasingly popular mobile app and push into live video continued to attract new advertisers and encouraged existing ones to boost spending.

Reuters April 28, 2016 02:15:12 IST
Facebook revenue beats estimates as mobile ad sales surge
| Reuters

Facebook revenue beats estimates as mobile ad sales surge
 Reuters

Facebook Inc (FB.O) reported a better-than-expected 51.9 percent rise in quarterly revenue as its increasingly popular mobile app and push into live video continued to attract new advertisers and encouraged existing ones to boost spending.

The company's shares rose 5.8 percent to $115.22 in after-hours trading on Wednesday.

Mobile ad revenue accounted for about 82 percent of total ad revenue in the first quarter ended March 31, compared with about 73 percent a year earlier.

Facebook said it had 1.65 billion monthly active users as of March 31, up from 1.44 billion a year earlier.

The company's net income attributable to common shareholders rose to $1.51 billion, or 52 cents per share, in the first quarter from $509 million, or 18 cents per share, a year earlier.

Excluding items, the company earned 77 cents per share.

Total revenue rose to $5.38 billion from $3.54 billion, with ad revenue increasing 56.8 percent to $5.20 billion.

Analysts on average had expected a profit of 62 cents per share and revenue of $5.26 billion.

The company also said it planned to create a new class of non-voting capital stock, known as the Class C capital stock.

Facebook said the proposal was designed in part to encourage Chief Executive Mark Zuckerberg to remain in an "active leadership role" at the company.

If the proposal is approved, the company intends to issue two shares of Class C capital stock as a one-time stock dividend in respect of each outstanding share of its Class A and Class B common stock.

Facebook has been rolling out new features to ramp up mobile advertising, several of which encourage advertisers to experiment further with video and migrate to the platform from television advertising.

(Reporting by Anya George Tharakan in Bengaluru)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

also read

Daughter kidnapped by father reunites with mother after 14 years through Facebook
World

Daughter kidnapped by father reunites with mother after 14 years through Facebook

Their official meeting or reunion took place on Monday (13 September) in Texas, but the two had earlier met at the border last week. They met each other after communicating on social media.

Watch: Subway worker fends off armed robbery in store, gets suspended as CCTV footage gets leaked
World

Watch: Subway worker fends off armed robbery in store, gets suspended as CCTV footage gets leaked

The video, captured on 5 September, shows Sotelo fighting off an armed robber, hitting him repeatedly with his own gun.

Facebook, Ray-Ban confirm to unveil their smart glasses on 9 September
News & Analysis

Facebook, Ray-Ban confirm to unveil their smart glasses on 9 September

In its partnership with Ray-Ban's parent company, EssilorLuxottica, Facebook has called its glasses, a stepping stone toward 'full augmented reality glasses'.