Facebook said its revenue rose 44.8 percent to $9.32 billion in the second quarter on a surge in mobile advertising revenue.
The company's net income for the quarter was $3.9 billion, compared to $2 billion a year ago.
Facebook's chief financial officer, David Wehner, reiterated comments he made on the company's first-quarter call, and again forecast a slowdown in ad revenue growth for the second half of the year. The mobile advertising revenue represented approximately 87% of advertising revenue for the second quarter of 2017, up from approximately 84% of advertising revenue in the second quarter of 2016.
CEO Mark Zuckerberg in its quarterly results said Facebook enjoys over 2 billion users in total, with 1.3 billion people using it every day. Facebook announced hitting two billion monthly users during the quarter, putting it miles ahead of social media rivals like Twitter.
Shares in the tech giant were boosted 4.5% in post-market trading on Wednesday to $173, a record high for the company.
Best iPhone, iPad, & Apple TV game controllersJust previous year, we shared that one billion people around the world use WhatsApp every month. But Facebook has been aggressively battling new contender Snap to protect its share of the market, copying Snapchat's "Stories" feature, a collection of photos that last 24 hours, in its own apps with Instagram Stories and WhatsApp Status. Those include apps like Instagram, WhatsApp and Messenger, two of which have more than a billion users. AI could help Facebook find relevant content to show from people and Pages you don't follow.
Since the start of the New Year, Facebook, Inc. The average estimate of 16 analysts surveyed by Zacks Investment Research was for earnings of $1.34 per share.
While Facebook's revenue continues to grow, some analysts expected the rate of growth will slow down.
Facebook COO Sheryl Sandberg said tests with Tropicana showed that shorter video ads were better.
Revenue: $9.2 billion, up 43% from the year-ago period. Higher engagement of that content, which hopefully stirs the pot for it to charge more money for those specific ad opportunities. The company is looking toward Messenger and WhatsApp for future revenue growth.
And WhatsApp, Facebook's other messaging property, is a green field that Facebook has hardly even begun to tap from a monetization perspective.
Mark Zuckerberg said during the earnings call that he expects artificial intelligence to have a significant impact on how Facebook operates. The company now has a headcount of 20,658 as of June 30, 2017, according to the earnings release.
Zuckerberg said he is optimistic about how AI is going to improve Facebook's core services in the coming years.