You will be redirected back to your article in seconds

Facebook’s 1.79 Billion Monthly Users Helped the Company to Another Record Quarter

Facebook once again surpassed analyst expectations with its most recent quarter, bringing in a total of $7 billion in revenue during Q3 of 2016, compared to $4.5 billion during the same quarter a year ago. The company’s net income for the quarter was $2.34 billion compared to $896 million a year ago. This equals adjusted earnings of $1.09 per share.

Analysts had expected earnings of $0.96 per share and revenue of $6.9 billion.

Facebook also didn’t disappoint on the usage metrics front. The company reported that it had an average of 1.18 billion daily active users in September, compared to 1.01 billion a year ago. Daily mobile actives increased from 894 million to 1.09 billion.

Every month, Facebook now gets used by 1.79 billion users, with 1.66 billion of those users accessing the service from mobile devices. In fact, mobile usage is growing faster than Facebook’s overall user base: Mobile daily actives grew 22% year-over-year, while daily actives across all screens grew by 17%. This also marked the first quarter for the company ever to surpass more than one billion users who access Facebook exclusively with mobile devices.

Facebook’s mobile user growth also led to a huge continued growth in mobile ad revenue. 84% of the company’s overall advertising revenue now comes from mobile screens, compared to 78% a year ago.

Drilling down into Facebook’s geographic growth shows that the company continues to add users in the U.S., Europe, and Asia. But it’s seeing even more growth in what the company calls the “rest of the world,” meaning Central and South America as well as Africa, where its user base jumped from 308 million to 377 million daily actives over 12 months. That’s 22% growth, compared to just 6% growth for the same metric in the U.S. and Canada.

However, users in the U.S. and Canada still generate a lot more money for the company than users in these emerging markets. During the last quarter, Facebook generated an average of $15.65 for each user in the U.S. and Canada, compared to just $1.21 in these “rest of the world” markets.

Facebook CEO Mark Zuckerberg modestly called the results “another good quarter” in the company’s earnings release, and pointed to video as a key revenue driver: “We’re making progress putting video first across our apps and executing our 10 year technology roadmap.”

Some of this will include a bigger focus on video and photo sharing. Zuckerberg said during Facebook’s earnings call Wednesday that the company is testing a new feature that will offer direct access to the camera with one swipe within the main Facebook app — a feature that would be reminiscent of Snapchat.

But taking cues from Snapchat clearly seems to work for Facebook; Zuckerberg said Wednesday that Instagram’s stories feature is already being used by more than 100 million people every day.

Popular on Variety

More Digital

  • VJ1 RuPaul's Drag Race

    Pluto TV Adds Seven More Free Viacom Channels, Including One for 'RuPaul’s Drag Race'

    Viacom continues stuffing more library content into Pluto TV, its free, ad-supported internet streaming service, adding a range of African American and LGBTQ programming from VH1 and BET. On Tuesday, Pluto TV launched seven new genre channels with content from its parent, including dedicated channels for VH1’s “RuPaul’s Drag Race” — with episodes from the [...]

  • Spotify

    Spotify Dismisses Amazon’s High-Definition Audio: ‘It’s Not a Big Differentiator’

    At the moment Amazon Music launched its new high-definition audio service on Tuesday morning, which it says offers the best streaming audio fidelity available, Spotify VP and head of investor relations Paul Vogel was speaking at Goldman Sachs’ Communicopia conference in Lower Manhattan. While Tidal and Deezer have long offered a high-fidelity service and Apple [...]

  • Venn co-founders

    VENN Raises $17 Million to Launch a Cheddar-like TV Network for Gaming

    Video game industry veterans Ariel Horn and Ben Kusin have raised a massive $17 million seed funding round to launch a new gaming-focused TV network called VENN. Short for Video Game Entertainment and News Network, VENN wants to mix esports with Twitch-style video game streaming and other gaming-related entertainment content when it launches in 2020. [...]

  • Amazon Music

    Amazon Music Unveils HD: the ‘Highest Quality Audio’ for Streaming

    Amazon Music today became the first of the three major streaming services to offer high-definition sound with the launch of Amazon Music HD. According to the announcement, the service offers recordings that are encoded with FLAC (free lossless audio codec, which means they can be compressed without a loss in quality) with more than 50 [...]

  • United Talent Agency Reveals New Logo

    UTA Unveils New Logo, Corporate Image

    UTA raised the curtain Monday on a new corporate logo. The three-dimensional image is meant to emphasize the talent agency’s focus on uniting ideas, opportunities and talent. Building signage with the new logo will go up next month at UTA’s headquarters in Beverly Hills. “Our new identity captures the multiple facets and intersections of our [...]

  • Altice One set-top

    Amazon Prime Video Coming to Altice's Optimum, Suddenlink Cable Services

    Altice USA plans to launch Amazon Prime Video for Optimum and Suddenlink cable customers nationwide in the next few months, under a pact announced Monday. Altice is the third pay-TV operator in the U.S. with a distribution deal for Amazon Prime Video, after Comcast and Cox Communications. The cable operator is adding Prime Video to [...]

More From Our Brands

Access exclusive content