After so many years of incredible growth, you might expect Facebook to be reaching a plateau. But the company’s latest Q2 earnings results show the social media Juggernaut isn’t slowing down in the slightest.
Mark Zuckerberg’s firm beat Wall Street’s estimates with $6.44 billion in revenue and $2.05 billion in profit during the second quarter of 2016, a 59 percent increase over the same period last year. Analysts had been looking for revenue of around $6.02 billion.
One of the most important metrics for Facebook is the Average Revenue per User (ARPU), which shows how much money the company makes on each person. It’s now at $3.82, higher than the estimated $3.60 and more than during the fourth quarter holiday season.
It may feel like everyone and their dog is now on Facebook, but its user base continues to grow and is edging ever closer to the 2 billion monthly active users (MAU) milestone. As of June 30, there are 1.71 billion MAUs on the site – about 23 percent of the world’s population – and 1.03 billion Daily Active Users (DAU), marking a 15 percent year-over-year increase.
Mobile is an even faster-growing area for the company: DAUs are up 22 percent to 1.03 billion, and MAUs increased 20 percent to 1.57 billion. Mobile advertising, meanwhile, now represents a massive 84 percent of all Facebook’s ad revenue.
The Q2 report caused Facebook’s stock to jump more than 6 percent in after-hours trading.
With so many people now using the social media site, it seems the only way it can continue growing at such a fast rate is by bringing the internet to the 60 percent of the population (4 billion people) without it. Facebook’s Connectivity Lab is working on technologies that will help those in remote areas get online, and recently conducted the first successful test of its Aquila drone.