It seems like Facebook is like a rich guy who is getting more richer with each passing month. Facebook’s first quarterly earning report tells the same story. Facebook has revealed the quarterly earnings report for 2016 on 27 April 2016. According to the report, Facebook has made $5.38 billion in the first three months in 2016 and stacked $1.51 billion in income. The value is 52% more than the revenue generated in the first quarter of 2015. Let’s have a look at which service has brought more money to Facebook.
Almost all of the (approximately 97%) money that Facebook earns comes from Facebook Advertising Service. Facebook Advertising revenue has increased by 57% year over year. It has reached to $5.20 billion in the first quarter of 2016. Mobile advertising revenue is increasing at an even higher rate. It is increasing by 76% year over year. Mobile advertising shares 82% of the total Facebook Advertising Revenue in the first quarter of 2016. That means Facebook has earned $4.26 billion through mobile advertising.
Facebook’s first quarterly is not just about how Facebook earned in the first three months of 2016. It also reveals the number of new users platform is gaining. There are more than 1.65 billion monthly active users on Facebook. 1.09 billion users among those log into their account daily. While the majority of the platform refers to Monthly Active Users, Facebook considers Daily Users to determine the wealth of the platform. There is year over year 16% increase in Facebook’s Daily Active Users. The amount of money that Facebook earns for each person who uses Facebook is $3.32 (Increased by substantial 33%).
So, this quarterly earnings report shows that Facebook is getting stronger and stronger with each pass passing years. Mobile has a significant effect on this quarterly earnings report. And it is expected to have a major effect on next quarter’s report as well. 91% of Facebook users use mobile devices to access Facebook. Facebook’s CEO Mark Zuckerberg said on the earnings call, “We’re focused not on what Facebook is, but what it can be and what it needs to be,” The company has also proposed the new voting structure for the Facebook shareholders. Check out the full quarterly earnings report of Facebook here.
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