Facebook reported its fourth quarter earnings today. Here’s what you need to know:
Facebook reported non-GAAP earnings per share of $1.41 on revenue of $8.8 billion, up 53 percent year-over-year. Analysts expected earnings per share of $1.31 on revenue of $8.51 billion.
Facebook’s sustained growth is remarkable, as the company has now exceeded earnings expectations in 18 of its 19 reports since going public in 2012. It is also the fifth straight quarter of Facebook growing revenue by more than 50 percent year-over-year.
Facebook now has 1.86 billion monthly active users (up 17 percent) and 1.23 billion daily active users (up 18 percent). That also exceeded analyst expectations of 1.84 billion monthly active users and 1.21 billion daily active users.
Facebook Q4 Monthly Active Users
2016: 1.86 billion
2015: 1.6 billion
2014: 1.4 billion
2013: 1.2 billion
2012: 1.1 billion
— Jon Erlichman (@JonErlichman) February 1, 2017
Facebook in a year added 269 million monthly active users. Nearly a whole Twitter's worth of users in one year.
— Shira Ovide (@ShiraOvide) February 1, 2017
A statement from Facebook CEO Mark Zuckerberg: “Our mission to connect the world is more important now than ever. Our business did well in 2016, but we have a lot of work ahead to help bring people together.”
Facebook’s mobile business continues to roll. It has 1.86 billion monthly active users on mobile, up 17 percent, and 1.15 billion daily active users, up 23 percent.
Mobile advertising revenue, which came in at $7.2 billion, now accounts for 84 percent of Facebook’s overall advertising revenue. That’s up from 80 percent in 2015, 69 percent the year prior, and 53 percent in 2013.
Shares were up more than 2 percent in after-hours trading. Facebook’s stock is up 16 percent in the past year:
Facebook’s Q4: Facebook made headlines during the past few months as it continues to fight the spread of fake news. It also just lost $500 million over a virtual reality headset court case.
The company is also investing big in video. It is promoting longer videos in the news feed and is also reportedly building an app for television set-top boxes and could create its own TV shows for it. The new product would create a way for Facebook to generate more video advertising revenue.
Facebook-owned Instagram continues to see steady growth and its new Stories product is stealing thunder from Snapchat.