Revenue Soars As Facebook Plots Content Streaming Play
Facebook’s latest earnings report has managed to outperform both last year’s results and the expectations of analysts as the company closes in on two billion monthly users.
For the final quarter of 2016, Facebook reported a 51% increase on last year’s numbers to bring in $8.8 billion in revenue and $3.56 billion in profit.
“Our mission to connect the world is more important now than ever,” said Mark Zuckerberg, Facebook founder and CEO.
Analysts originally expected only $8.51 billion, with the previous quarter’s results seeing the company rise past the $7 billion mark.
“Our business did well in 2016, but we have a lot of work ahead to help bring people together,” he said.
Meanwhile, the company’s monthly active usersbase moved up to 1.86 billion. The social network now attracts 1.23 billion users a day on average.
As a result, total revenue for 2016 reached more than $27.6 billion, a massive jump on 2015’s $17.93 billion.
Notably, these numbers don’t take into account today’s court-awarded penalty of $500 million towards Facebook-subsidiary Oculus and are mostly driven by Facebook’s mobile users.
Mobile advertising continues to make up the bulk of the company’s earnings here, now accounting for 84% of Facebook’s revenue.
However, that could change in the near future with the social network said to be eyeing an expansion into the content streaming market in 2017.
Reports out of the Wall Street Journal say development on a Facebook TV app has been underway for a number of years and that the company is in talks with media companies to license a variety of long-form, TV-style content for the app.