Facebook, Inc. (NASDAQ: FB) released their second quarter earnings Wednesday afternoon and surpassed everyone’s expectations as the company hit an all time high.
"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.”
Facebook had a great second quarter as the company beat many predictions and estimates by analysts.
According to Thomson Reuters, Facebook posted an EPS of $1.32 compared to $1.13 and also its revenue was $9.32 billion compared to $9.2.
According to StreetAccount, Facebook’s mobile ad revenue was $8 compared to the expected $7.68 billion. Monthly users on the social media jumped from 2.01 billion instead of the 1.98 billion expected. And capital expenditures were $1.44 billion as opposed to the expected $1.73 billion.
Mobile advertising had caused the social media site to have a thriving second quarter. Mobile ads are majority of Facebook’s revenues for this past quarter, as the company stated about 87% of its revenue was due to ads.
The number of daily active users was recorded at 1.32 billion on average for June 17th, which is a 17% increase year over year. And monthly active users were at 2.01 billion as of June 30th, with also a 17% increase year over year.
"Facebook is well-positioned" to take advantage of the trend, Staas told CNBC in a phone interview.
The average price of an ad rose 24 percent, Chief Financial Officer David Wehner said on a conference call with analysts after the results were released.
The number of ads rose 19 percent, Wehner also said, according to CNBC.
On a conference call, Wehner, restated that Facebook plans to slow down its revenue growth this year as it approaches the limit of ads it can show in the New Feeds. Zuckerberg expects video to be the main source of growth in the future and the company is investing heavily in monetizing Messenger and WhatsApp, according to Business Insider.
“We have a lot more to do here to give people a voice and help everyone stay connected with their family and friends, but now I believe we have a responsibility to do even more. Our new mission is to bring the world closer together.” said CEO Mark Zuckerberg in the second quarter earnings conference call.