The social networking giant’s expenses skyrocketed, increasing 68% year-on-year to $US3.04 billion, but a huge drive in video advertisements provided the capital needed for Facebook to bank on new, revolutionary technologies. The report’s figures beat the Wall Street’s estimate because analysts were only looking for $0.52 a share on sales of $4.37 billion.
Facebook had 1.55 billion monthly active users at the end of September, up 14 percent from the same time past year. The company has reported $4.5 billion revenue and the profit of $1.46 billion. ‘Year on Year’ results also portrays that company made more money on mobile advertising alone than the whole business. Facebook’s GAAP net income for the last three months – its real profit – was $896 million compared to $719 million last quarter.
Mobile daily users gained about 27 percent to 894 million on average for September, while mobile monthly users increased 23 percent to 1.39 billion.
Facebook said advertising revenue grew 45% from a year ago to $4.29 billion.
Sandberg said the average adult in the US spends 25 minutes of their weekly media time on mobile devices.
“We had a good quarter and got a lot done”, said Mark Zuckerberg, Facebook’s chief executive.
Facebook also reported that developing markets had seen strong growth in the number of users.
Worldwide, Facebook accounted for 8% of worldwide digital ad revenues, in 2014 and that share should increase to 9.6%, this year, according to eMarketer.
Facebook used to be criticized for not having a solid mobile strategy, but those days seem to be long gone.
The shares instantly jumped in after-hours trading, rising around 4pc to a new all-time high that values Facebook at close to $300bn.
Shyam Patil of Susquehanna Financial Group said: “I think the investors would like the company to continue to invest given that the opportunity is pretty large”.