Facebook’s growth isn’t stopping, and neither is its ability to monetize billions of eyeballs. The company surpassed 2 billion monthly active users in Q2 of 2017, something that CEO Mark Zuckerberg called “an important milestone for our community,” during Facebook’s Q2 earnings call Wednesday afternoon.
Just as important for investors was that Facebook once again solidly beat market expectations.
Facebook generated close to $9.32 billion in revenue during its second quarter, compared to $6.4 billion during the same quarter last year. The company’s net income for the quarter was $3.9 billion, compared to $2 billion a year ago. This equals diluted earnings of $1.32 per share, up from $0.78 last year.
Analysts had expected $9.2 billion in revenue, and a net profit of $1.13 per share.
Facebook surpassed 2 billion monthly active users on its platform during Q2, and ended the quarter with 2.01 billion users. The company had an average of 1.32 billion daily active users in June, up from 1.13 billion a year ago.
Facebook’s leadership didn’t comment much on reports that the company was getting ready to launch its first slate of video originals as early as next month, but CFO David Wehner warned that video content investments will contribute to expense growth in the second half of 2017. “Video will continue to be a big focus and area of investment for us,” he said.
That increased focus on video could over time also contribute to declining ad growth in Facebook’s core product, Wehner warned. “As people spend more time with video, that is going to have a limiting effect on time spent in newsfeed.”
Zuckerberg later added that professional video also had lower margins than the user-generated content uploaded to Facebook’s apps. “The economics are quite different from the current feed-based business that we have today,” he said.
Other notable tidbits from Facebook’s earnings report:
- 87% of all of Facebook’s ad revenue is generated on mobile, compared to 84% a year ago.
- Facebook now employs 20,658 people, and has increased its headcount 43% year-over-year.
- Facebook’s ratio of daily to monthly active users has remained at 66% over the past 6 quarters, indicating that engagement holds steady while overall user numbers are growing.
- Facebook’s ad revenue grows stronger in the Asia-Pacific region (54.4% year-over-year) than in Europe (42.9% year-over-year) and North America (44.6% year-over-year), but the company still makes close to half of its money in North America and Canada.