Facebook shares climb to an all-time high as Q3 earnings beat estimates

By Shawn Knight ยท 6 replies
Nov 5, 2015
Post New Reply
  1. Facebook on Wednesday reported third quarter revenue of $4.5 billion for the period ending September 30, an increase of 41 percent compared to the $3.2 billion it earned during the same period a year earlier. Analysts were expecting just $4.37 billion during the three-month period.

    The social networking giant posted a profit of $896 million, or $0.31 per share. That’s an 11 percent increase over the $806 million in profit the year-ago quarter brought. For a company founded by a teenager that’s on the cusp of celebrating its 12th anniversary, Facebook has demonstrated impressive staying power.

    Zuckerberg and company also revealed that it logged 1.01 billion daily active users in September, 894 million of which visited via mobile device. In fact, Facebook said that 78 percent of its total revenue came from mobile ads versus just 66 percent a year ago. Monthly active users, meanwhile, climbed to a staggering 1.55 billion, good for an increase of 14 percent year-over-year.

    Facebook owes much of its advertising revenue to video ads. On average, users are collectively logging eight billion views each day. That means Facebook has doubled its daily video views per day since April. To further put the feat into perspective, that’s 760 years worth of viewing each day.

    Facebook said its ad business now generates $10.49 per user in Canada and the US.

    Investors responded favorably to the news as share value is up nearly four percent in after-hours trading, closing at an all-time high.

    Permalink to story.

  2. cliffordcooley

    cliffordcooley TS Guardian Fighter Posts: 9,713   +3,691

    I will never understand how Facebook makes so much revenue. I'm definitely not spending $10, and don't know anyone that does.
  3. davislane1

    davislane1 TS Grand Inquisitor Posts: 4,736   +3,757

    Ads + data on more than 1.49 billion users.
  4. mctommy

    mctommy TS Addict Posts: 215   +38

    But ads only pay if someone clicks on it... and most people I know don't click on ads.
  5. davislane1

    davislane1 TS Grand Inquisitor Posts: 4,736   +3,757

    Ads pay for clicks and views, the latter resulting in a significantly smaller payout. It also depends on the provider.

    Besides, even if only 10% of users click appropriately targeted ads, that's still 149 million clicks - per day.
  6. yRaz

    yRaz Nigerian Prince Posts: 2,305   +1,400

    They also sell Metadata on market trends
  7. Skidmarksdeluxe

    Skidmarksdeluxe TS Evangelist Posts: 8,647   +3,274

    I sleep well knowing I'm not one who adds to their coffers.

Similar Topics

Add your comment to this article

You need to be a member to leave a comment. Join thousands of tech enthusiasts and participate.
TechSpot Account You may also...