Facebook Inc. (NASDAQ: FB) surprises Wall Street again after the company posted another massive quarterly earnings beat due to strong growth in mobile-advertising business.
The social network on Wednesday said that first-quarter profit was $512 billion, or 52 cents a share, up from $512 million, or 18 cents a share, a year earlier. Excluding certain items, earnings for the quarter ended in March were 77 cents a share, up from 42 cents a year earlier. Analysts surveyed by Thomson Reuters had projected earnings of 62 cents per share.
Revenue jumped 52 percent to $5.38 billion that topped analysts’ estimate of $5.26 billion.
Most of the revenue came from advertising. The company said advertising revenue rose 57 percent to $5.2 billion from $3.3 billion in the latest quarter. Mobile advertising continues the growing momentum, which accounted for about 82 percent of total ad revenue, up from 73 percent a year earlier.
Facebook continues to dominate the social media space while other rivals struggle in user growth. Facebook’s monthly active users were 1.65 billion in the first quarter, topping analysts estimate of 1.63 billion. Zuckerberg said people around the world spend on average more than 50 minutes per day on Facebook, Instagram and Messenger, excluding WhatsApp.
The company also announced a three-for-one stock split plan. The move is to create new class of non-voting C shares. Under the plan, shareholders would get two C shares for each class A or class B share they own. This move is to let Facebook CEO Mark Zuckerberg maintain control of the company.
"This proposal is designed to create a capital structure that will, among other things, allow us to remain focused on Mr. Zuckerberg's long-term vision for our company and encourage Mr. Zuckerberg to remain in an active leadership role at Facebook," the company said in its earnings release.
Facebook shares Jump 9.15 percent to $118.86 at 11:22 a.m. in New York.