Mobile advertising drives strong Facebook quarter
Mobile advertising continued to drive growth at Facebook, with revenue shooting up 51% in the fourth quarter, topping Wall Street estimates.
The social media giant rang up $8.81 billion in revenue, above analyst forecasts of $8.5 billion. Mobile advertising accounted for 84% of overall advertising revenue in the fourth quarter, up from 80% a year ago.
Facebook delivered on the bottom line as well, with profit more than doubling to $3.57 billion from $1.56 billion a year ago. Earnings per share, excluding certain expenses, were $1.41 a share, above the $1.31 analysts expected.
"Another solid quarter," said CFRA analyst Scott Kessler. "You have the overall revenue growth again above 50% and the adjusted EPS number was notably above expectations. As Facebook is prone to do, they exceeded estimates across all the major metrics that we track."
The financial results may have — at least temporarily — soothed anxiety among investors. Facebook said in November that it expected higher spending in 2017 and slower revenue growth starting in the middle of this year.
The results were announced on the same day that a Dallas jury found that Facebook owed $500 million to tech company ZeniMax in a lawsuit that questioned the technological origins of the virtual reality headset, the Oculus Rift. Facebook said it would appeal the verdict. Shares, which have gained 16% this year, rose slightly in extended trading.
Source: USA Today