Facebook Inc (NASDAQ:FB) released its fourth quarter earnings report after closing bell tonight, posting non-GAAP earnings of $1.41 per share on $8.81 billion in revenue.
For the quarter ended December 31, total revenue grew by 51 per cent year-over-year to US$8.81 billion, and advertising revenue was up 53 per cent to US$8.6 billion. Advertising revenue hit $US8.81 billion in the fourth quarter, up from from $US5.84 billion in the same period a year earlier - a huge increase for any large company. Year-over-year, daily active users in the latest quarter increased by 18% to 1.23 billion. For the full year Facebook pulled in $27.6 billion in revenue, an increase of 57 percent compared to 2015.
Facebook stock jumped as much as 3 per cent $133.24 per share after the company announced its quarterly results.
Analysts expected total ad revenue to be around $US8.3 billion, according to Reuters.
Overall, the biggest driver in revenue and user growth is on mobile.
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The WSJ report also reiterates claims that Facebook is looking to licence original content - potentially placing it alongside the likes of Amazon Video which has successfully become a key competitor to Netflix in recent years. "Our business did well in 2016, but we have a lot of work ahead to help bring people together".
Later previous year, Facebook has announced the company's plans to invest in original contend and licensed video to impressively add ads in between its live streamed content. Facebook's video ambitions and daily engagement are in the spotlight too. Facebook Inc.is headquartered in Menlo Park, California.
"We expect that 2017 will be an aggressive investment year", said Facebook chief financial officer David Wehner on a conference call.
"I like it because I can connect with all my family overseas and it easy connected with people through your whole entire life", she said. Facebook reported that fourth-quarter expenses grew 29% from the same period a year earlier to $4.24 billion. JMP Securities analyst Ron Josey estimates Instagram generated $856 million in revenue during the quarter. "We're going to continue to invest in higher growth", he said.