Facebook’s revenue for the first three months of 2016 ending March 31 has increased by more than 50 percent surpassing analysts expectations.
“We had a great start to the year…We are focused on our 10 year roadmap to give everyone in the world the power to share anything they want with anyone,” said Mark Zuckerberg, Facebook founder and CEO.
The tech giant’s revenue was recorded at 5.38 billion US dollars in the first quarter of 2016 from 3.54 billion US dollars posted the same period last year.
The company’s performance has bean largely attributed to mobile advertising revenue. Mobile advertising revenue represented about 82 per cent of advertising revenue for the first quarter of 2016. This is an increase of 9 percent from a similar period in the previous year.
According to the quarter one results, as of the end of March, Facebook’s daily active users were 1.09 billion on average, representing a 16 percent increase year-over-year.
— TechCrunch (@TechCrunch) April 28, 2016
Meanwhile, mobile daily active users have risen by 24 per cent to 989 million on average.
The tech firm’s net income rose several folds by 194.9 percent to 1.51 billion US dollars or 52 cents per share.
Facebook’s shares rose 9.9 percent in after-hours trading on Wednesday following the announcement.
During the announcement of the results it was established that the company’s board of directors have approved a proposal to create a new class of non-voting capital stock, known as the Class C capital stock.
“This proposal is designed to create a capital structure that will, among other things, allow us to remain focused on Zuckerberg’s long-term vision for our company and encourage Zuckerberg to remain in an active leadership role at Facebook,” read a “statement”: http://investor.fb.com/releasedetail.cfm?ReleaseID=967167 by the tech giant.