Facebook increased revenues by 44.8% to $9.32 billion during the second quarter of 2017 following strong results from its mobile advertising revenue. Profits jumped a whopping 71% to $3.89 billion.
Mobile ad revenue made up 87% of the company’s total revenue increasing 84% from the year-over.
Facebook attributed that boost to video monetisation across its social media platform news feed as well as subsidiary Instagram. Though the company did not disclose exact figures for Instagram, it’s clear that the app has become a much larger focus for Facebook over the last two years.
Indeed, Instagram Stories and also WhatsApp Stories now boast 250 million daily active users – each. During the earnings call, Zuckerberg revealed that WhatsApp had reached 1.3 billion monthly users, with one billion using the messaging app daily.
Whilst these are still impressive results, they represent a slight decline over Q1 growth figures (49%). Back in 2016, Facebook was seeing its revenue jump 59% during Q2.
The company had scaled back news feed adverts slightly, resulting in an increase in unit pricing of 24%. In addition, Facebook cut down on operational costs during the last quarter.
Overall, the company is nowhere near saturation just yet. It recently begun adding ads to Messenger and launched a Marketplace classified ads feature.
In addition, it plans to roll out an original TV-style programme for its mobile app to boost engagement.