Facebook has revealed its 3rd quarter earnings for the year 2016 today. Mark Zuckerberg said, ‘We had another good quarter. We’re making progress putting video first across our apps and executing our 10 year technology roadmap.”
Massive Increase in Revenue/Income
The social media giant earned $7,011 million in total revenue in Q3 2016 compared with $4,501 million earned during the same time period last year.
Facebook’s income from operations more than doubled compared to results from last year. 2015’s third quarter earnings stood at $1,459 million while this year Facebook’s income went up to $3,122 million indicating an increase of 114%.
After taxes, the net income saw an increase of 165% year on year. 2015’s third quarter net income was $896 million while this year’s third quarter net income is $2,379 million.
Its not surprising to see that the bulk of Facebook’s revenue for the third quarter came from advertisements. The social media giant earned $6,816 million in just advertising revenue compared with $4,299 million earned last year. That’s an increase of 59% year on year.
In addition to that, diluted earnings per share also saw a massive increase year on year of 165%. Last year it stood at $0.31 while this year for the same time period (Q3) it stood at $0.82.
User base Statistics And Mobile Advertising Revenue
The user base for Facebook is also steadily rising. About a billion of the world’s population now uses Facebook on mobile, and mobile only for the first time in the platform’s history.
Both monthly and daily active users on mobile saw an increase of 20% and 22% respectively, compared to Q3 of 2015. Both monthly active users and daily active users for mobile stand at 1.66 billion and 1.09 billion respectively.
Overall daily and monthly active users increased at 17% and 16% respectively. Daily active users are now 1.18 billion in number while monthly active users are now 1.79 billion.
Another important point to note is Facebook’s advertising revenue. Facebook’s cash cow, so to speak, is their mobile advertising revenue. The mobile advertising revenue accounted for 84% of their total advertising revenue for the third quarter of 2016. In comparison, the mobile advertising revenue accounted for 78% of the total advertising revenue in 2015.
Although the increase is not much this year compared with last year it still shows how much Facebook relies on their mobile offerings. This also shows how important the mobile aspect is for Facebook and its future. That said Facebook has also run out of room to show more ads to its users. It will need to change its advertisement strategy to continue increasing their ad revenue at this rate.