Facebook Q4 Revenue Soars 51%, Thanks To Mobile Ads

Facebook’s impressive financial results reflect the central role social media sites play both in our lives and in our economy.

Facebook’s investment in video will be a big focus for investors.

So why all the big fuss?

Zuckerberg said that longer-form, “premium” video content relies on a class of creators with different expectations, and Facebook is still devising a business model that works.

This equals earnings per share of $1.41, compared to $0.79 a year ago. The company had warned that it was getting close to the maximum “ad load” or percentage of ads in the average user’s news feed. Pacific. But it’s likely that video ads played a role in the surprise upside as well as mobile ads. It has also introduced many interesting features with the passage of time.

Under pressure to stymie the spread of fake news, Facebook last month modified its system for showing trending topics. Namely, it has been making it easier for businesses to interact with customers within Messenger and WhatsApp – a step in building social networks into businesses that Facebook always employs before it begins monetizing customer interactions. Fast-forward a few years, and it seems to have a handle on the situation. And have started rolling it out in Facebook as well. Think: pile of teddy bears, girl singing with a guitar, someone recording lightning in the distance. The company is testing new mid-roll video advertising products in the hopes it can encourage professional content producers to publish more video to the platform. Zuckerberg is of the view that the company witnesses video as a mega trend. U.S. President Donald Trump used the service for that on Tuesday, when he broadcast his announcement of U.S. Supreme Court nominee Neil Gorsuch on Facebook Live. So there’s good reason for investors to be concerned about Instagram’s potential in a publicly traded Snapchat world. Daily active users only grew by 6.5% year-over-year in the US, but by 28% in Asia. After all, the company can’t keep endlessly shoving more advertisements before users without souring them on the experience.

Jefferies analyst Brian Fitzgerald says expense growth is a “potential concern”, but Facebook “has a history of “under-promising and over-delivering in this area”.

Facebook’s total worldwide revenue also continues to grow, reaching $4.83 in Q4, up more than $1 per user from the year before. Since January 1, shares are up more than 14%.

In the fourth quarter of 2016, Facebook’s net income rose 128 percent to $3.6 billion and revenue climbed 51 percent to $8.8 billion.