5:17 AM, Jul 27, 2017 — Facebook (FB) surpassed analysts’ expectations posting sharp growth in sales and earnings in the second quarter of the year as advertising revenue surged against a backdrop of double-digit growth in both daily and monthly users of the social networking site.
The Menlo Park-headquartered company posted total revenue of $9.32 billion in the three months ended June 30, up 45% from the corresponding quarter of the prior year, according to results published by Facebook after markets had closed on Wednesday afternoon. This beat the consensus estimate of analysts polled by Capital IQ for revenue of $9.19 billion.
Net income rose by 71% to $3.89 billion over the corresponding time frame and diluted earnings per share rose by 69% to $1.32, up from $0.78 in the prior-year period and surpassing analysts’ expectations for $1.13 per share.
The results were buoyed by a surge in advertising sales which accounts for the lion’s share of Facebook’s revenue. Advertising revenue was worth $9.16 billion, up from $6.24 billion in the prior year period, while payments and other fees, which make up the remainder of total revenue, contracted to $157 million from $197 million in the prior-year period.
Mobile advertising revenue represented approximately 87% of advertising revenue for the second quarter, up from 84% of advertising revenue in the second quarter of 2016.
Daily active users were 1.32 billion on average in June, up 17% year-on-year while monthly active users were 2.01 billion as of June 30, also 17% higher year-on-year.
“We had a good second quarter and first half of the year,” Mark Zuckerberg, Facebook’s chief executive, said. “Our community is now two billion people and we’re focusing on bringing the world closer together.”
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