Facebook income, revenue up in Q1

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The company has also benefited as more advertisers purchase video ads.

Mark Zuckerberg's company was boosted by solid growth in its mobile ad business, with mobile ad revenue making up 85 er cent of the firm's total advertising revenue.

While early stock price reaction indicates investors aren't too pleased with Facebook Q1 earnings, we think long-term investors should buy FB stock on any post-earnings dips.

Wehner gave similar warnings about ad load in November and in February, although a slowdown has not materialized.

And Facebook's monetizing the heck out of its users. Notes from the analyst conference call. Facebook also announced surpassing 5 million active advertisers on Facebook and 1 million on Instagram. The key thing for investors to focus on is Microsoft's early lead in developing AR hardware and the potential for the company to take that and build out a new computing platform based on augmented reality.

Last summer Facebook rolled out technology created to counteract the effects of ad-blocking software.

That said, "In other cases, we weren't so fortunate", Zuckerberg admitted.

Second, look for commentary on whether the company is any closer to monetizing Messenger or WhatsApp. The glasses have an embedded camera and sync with your smartphone so users can easily record what they're doing without having to whip out their phone.

"We're going to keep putting video at the center of all of these services", Zuckerberg said during the earnings report. With Facebook's challenge of putting more ads in News Feed, user growth can help offset some of the pressure on ad revenue. Those ad breaks could wind up fetching more money per ad for Facebook than the news feed ads now going unseen, which might mean that Facebook could eventually even reduce the number of standard news feed ads to avoid feeling like Fox-era MySpace.

Richard Broughton, Research Director at Ampere Analysis says: "It may be in second position now, but when it comes to ARPU, Facebook advertising has been rapidly closing the gap on Google's lead". According to CFO David Wehner, those efforts are having a positive impact.

Midroll ads offer Facebook an opportunity to squeeze in more ads.

Also not included in the ad load calculation: ads within Facebook Messenger. Wehner said Facebook is embarking on a "significant ramp up" with capital expenditures in the range of $7 billion to $7.5 billion, up 50% from previous year. And so we've worked on branded content, the ability to tag a sponsor, share posts, and insights.

Revenue: $8.03 billion vs. $7.83 billion expected, up 49% from the year-ago period.

Advertising revenues were $7.857 billion, jumping 51% year over year, driven by increasing mobile engagement, higher number of marketers and consistent investment in new products.

- Payments and other fees revenue were $175 million was down 3%.

- Europe and North America ad revenue grew at 47%.

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