Facebook is indeed having a wonderful year so far as second quarter earnings of the years shows amazing speed in growth in term of users , EPS , revenue which beats all expectations this years, in which its stock record has been on the high side this year after its expenses were reduced to fit in the budget for year, the company has reported a much more higher and remarkable increase in his profit for the year which was mostly driven by the mobile ads video, and it helped the company revenue grew at a larger than it’s rival Google.
In a conference call , the company explained how it managed to keep expenses in check which was previously predicted to jump 40 to 50 percent ,but it beat forecasts with a lower expenses of 40- 45 percent, the company also added a 4 % percent stock record increase.
Here are the key second-quarter metrics:
EPS: $1.32 vs. $1.13 expected, according to Thomson Reuters
Revenue: $9.32 billion vs. $9.2 billion expected, according to Thomson Reuters
Mobile ad revenue: $8 billion vs. $7.68 billion expected, according to StreetAccount
Monthly users (MAUs): 2.01 billion vs. 1.98 billion expected, according to StreetAccount
Capital expenditures: $1.44 billion vs. $1.73 billion expected, according to StreetAccount
Facebook has experienced tremendous growth, as the company has now has about 20, 658 workers which is up to 43 percent from a year earlier, and the number of ads on the website rose to 19 percent , and the average ad price rose to 19 percent said chief financial officer David Werner on a conference call with the analysts, he also explained how the the capital expenditures were $1.44 billion which was 44 percent less than expected.
Revenue growth in this year’s second quarter in which its rate was twice and more than the its rival Google according to the alphabet unit second quarter earning results and the mobiles ads growth of about 19 percent for the second quarter. And they are making more plans to double their workforce and build more data centres to accommodate more surge in traffic especially now that Facebook is looking to get into the video streaming business where it is expected to have its own original shows.
Mobile ads which make up a large chunk of Facebook’s revenue has hit about 8 billion dollars for the second quarter which is far from the expected predicted with about 53 percent. Facebook aims to be among the top five video content platforms ,more ads videos will be added and display ads will be added to every version of the Facebook app as it target is to reach more of its consumers and enable them have access to the latest in style , mobile, goods and services .