Facebook Inc (FB) Smashes Earnings, Revenue Estimates

Tomas Mccoy
May 4, 2017

Mobile accounted for 85% of ad sales, up from 82% a year ago.

The social media giant is expected to generate $31.94 billion in mobile ad revenue globally in 2017, up 42.1 percent from a year earlier, according to research firm eMarketer.

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

Revenue in the three months ended in March rose 51%, year over year, to $7.857 billion, yielding EPS of $1.04 on a GAAP basis.

Update: Facebook included a note in its earnings release that it will "no longer [be] reporting non-GAAP expenses, income, tax rate and earnings per share (EPS)".

Facebook's "daily active user" count rose 18%, year over year, to 1.28 billion, while its "monthly active users" rose 17% to 1.94 billion.

"Though the company was cagier about admitting by exactly how much, nor did they disclose how it will affect Facebook Inc (FB)'s overall revenue, this forces investors-and Facebook Inc (FB)-to try and identify the next possible big revenue stream (s)", he said.

"We had a good start to 2017", he intoned.

Oh, and by the way, Facebook stock is down slightly in after hours trading. "We're continuing to build tools to support a strong global community".

Facebook published its first quarter financial results on Wednesday, beating market expectations.

As Facebook moves forward, it's in search of ways to overcome new issues around its rapid growth such as diversity problems, properly tracking ad performance, and what to do about its Facebook Live problem.

Earlier in the day, the company said it would add 3,000 people over the next year to monitor reports of inappropriate material on its network and removing videos such as murders and suicides.

Other reports by VideoGamingPros

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