Facebook's income more than triples as it cashes in on mobile advertising
Facebook reported that its income has more than tripled in the last quarter, outperforming analysts' expectations.
The site's net income increased from $896m (€806m) in 2015 to $2.4bn in the last quarter. Mobile advertising revenue accounted for 84pc of Facebook's total advertising revenue of $6.82bn in the third quarter ended 30 September, compared with 78pc a year earlier.
The social network reported more than $7bn in revenue in the last quarter, boosted by sales of its mobile advertising. That figure was up 56pc on the same period last year and higher than the $6.92bn predicted by analysts.
The number of people using Facebook also continues to rise, with monthly active users of the site climbing 16pc on last year to 1.79bn, with 1.18bn visiting the social network daily.
But shares in the site fell as much as 7.8pc after investors spooked at comments made by chief financial officer David Wehner on a conference call. He said revenue growth rates will come down meaningfully next year, because the company won't keep increasing the percentage of advertss that Facebook users see in their news feed.
He added that capital expenditures will rise substantially in 2017 as the social network works to recruit the best engineers and build data centers.
Use of the site's mobile apps was up, with over a billion people now using Facebook on mobile every day, while 1.66 billion people check Facebook on a mobile device each month. This means that more than 90pc of Facebook's users access the social network through mobile devices.
"We had another good quarter,"said founder and chief executive Mark Zuckerberg. "We're making progress putting video first across our apps and executing our 10-year technology roadmap."
Facebook introduced Facebook Live, their live broadcasting video service where any user can stream directly onto the site earlier this year. The company also launched Marketplace, a feature that allows people to buy and sell items locally, and has been focusing more on video to better compete with Google's Youtube.
The social network's latest results are in stark contrast to those of rival Twitter, who in their own financial report last week revealed a loss of £83 million, as well as plans to cut 9pc of its global workforce.
Its shares were up 1pc in after-hours trading, and they have risen 21.5pc since the start of the year.