×
You will be redirected back to your article in seconds

With 2 Billion Monthly Active Users, Facebook Brings in Revenue of $9.3 Billion in Q2

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.

More Digital

  • Google Placeholder

    Google Accelerates Google+ Shutdown Following New Privacy Mishap

    Google will shutter its struggling social network Google+ sooner than previously announced: The company said Monday that Google+ will shut down in April of 2019. It also disclosed a new security vulnerability that briefly exposed personal data of some 52.5 million Google+ users. The bug, which was introduced to Google+ in November, allowed developers to [...]

  • Eddie Lazarus Sonos

    Sonos Hires Tribune General Counsel Eddie Lazarus as Chief Legal Officer

    Smart speaker maker Sonos has hired former Tribune exec Eddie Lazarus as its new chief legal officer. Lazarus will be in charge of all legal, regulatory, compliance and SEC reporting issues, among other things. Prior to joining Sonos, Lazarus worked as general counsel and chief strategy officer for Tribune Media. Before that, he was chief of [...]

  • Rhapsody, Sony Music to Launch Spotify

    Rhapsody, Sony Music to Launch Spotify Competitor in Japan

    Rhapsody and Sony Music Entertainment today announced a partnership to launch what they describe as the first on-demand, high-resolution streaming music service in Japan. Rhapsody International is providing its “Powered by Napster” platform including a set of systems, tools and APIs to allow SMEJ to quickly launch and bring its on-demand service to market. The service, [...]

  • Vidcon Sarah Tortoreti

    VidCon Has a New Marketing Chief: Nickelodeon's Sarah Tortoreti

    VidCon tapped Sarah Tortoreti as VP of marketing to head up the digital-creator and video confab’s promotional strategies worldwide. Tortoreti joins VidCon from Viacom’s Nickelodeon, where she was director of marketing and brand strategy since April 2016. In early 2018 Viacom acquired VidCon, founded by veteran YouTube creators Hank Green and John Green. In the newly [...]

  • Julie Henderson - Snap

    Snap Taps 21st Century Fox's Julie Henderson as Communications Chief

    Fox PR veteran Julie Henderson has been named chief communications officer of Snap, parent company of social-messaging and media app Snapchat. Henderson, who is currently EVP and chief communications officer for 21st Century Fox, will report to Snap CEO Evan Spiegel. Henderson is set to start at Snap immediately after the completion of the sale [...]

  • THE UMBRELLA ACADEMY

    'The Umbrella Academy' Superheroes Series Premiere Date Set on Netflix

    The dysfunctional-family superheroes of “The Umbrella Academy” are landing on Netflix worldwide on Feb. 15, 2019. The live-action series is based on the “Umbrella Academy” comic books created and written by Gerard Way and illustrated by Gabriel Bá, published by Dark Horse Comics. The Netflix original series comprises 10 one-hour episodes. “The Umbrella Academy” stars [...]

More From Our Brands

Access exclusive content