Facebook Inc. (FB), Wednesday reported a 71 percent increase in second-quarter profit, as the social networking giant continues to make huge revenues from ads.
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Menlo Park, California-based Facebook’s second-quarter profit surged to $3.89 billion or $1.32 per share from $2.28 billion or $0.78 per share last year.
On average, 35 analysts polled by Thomson Reuters estimated earnings of $1.13 per share for the quarter.
Facebook no longer report earnings on an adjusted or non-GAAP basis, while Wall Street’s estimates are comparable only to adjusted results.
Revenues for the quarter soared 45 percent to $9.32 billion from $6.44 billion last year. Analysts had a consensus revenue estimate of $9.20 billion for the quarter.
Daily active users rose 17 percent to 1.32 billion on average for June, while monthly active users increased 17 percent to 2.01 billion.
Revenues of Facebook, the world’s most popular social networking site, continues to surge every quarter as companies and other firms continue to spend heavily to advertise on the social network.
“We had a good second quarter and first half of the year,” said Mark Zuckerberg, Facebook founder and CEO. “Our community is now two billion people and we’re focusing on bringing the world closer together.”Mobile advertising revenues continue to be dominant contributor to ad revenues as it represented 87 percent of advertising revenue for the quarter, up from 84 percent last year. Total advertising revenues surged 47 percent to $9.16 billion.
Total costs and expenses jumped 33 percent to $4.92 billion, as Facebook continues to spend heavily on research and development as well as on marketing.
FB closed Wednesday’s trading at $165.61, up $0.33 or 0.20%, on the Nasdaq. The stock, however, dropped $0.68 or 0.41% in the after-hours trading.
First Seen on RTTNews