Facebook, Inc. (NASDAQ: FB) on Wednesday reported revenue and profit that topped analysts’ estimate, boosted by strong mobile ad business. But the company still warned that ad load could "come down meaningfully" after mid-2017.
The social media giant said revenue rose 49 percent to $8.03 billion in the first quarter, beating analysts’ projection of $7.84 billion, according to Thomson Reuters. Most of the revenue came from advertising business. Advertising revenue rose 51 percent to $7.86 billion, while mobile ad revenue accounted for 85 percent of it.
Net income was $3.06 billion, or $1.04 a share, in the first quarter, also beating the 87 cents consensus estimate compiled by Thomson Reuters.
"We had a good start to 2017," said Mark Zuckerberg, Facebook founder and CEO. "We're continuing to build tools to support a strong global community."
But chief financial officer David Wehner warned that the rapid growth of ad load may not last long. Ad load is the number of ads on the website. Wehner repeated its warnings that ad revenue growth could come down significantly after mid-2017. He gave similar warnings in November and February.
Facebook has invested heavily in new businesses that may fuel the growth in the future. Facebook’s Instagram now has 700 million users and starts to contribute to the revenue growth. Although Facebook didn’t break down the number.
The company also make efforts to take on fake news and live video murders. Zuckerberg said the company will hire 3000 workers to help monitor sensitive content.
Facebook share fell 0.29 percent to $151.35 in the early trading in New York.