So much for that cautious outlook last quarter. Facebook's global ad revenue is expected to total $33.76 billion this year, according to forecasting firm eMarketer, making Facebook the largest ad publisher after.
In its most recent quarter, Facebook's total revenue spiked by 51 percent year-over-year to hit $8.81 billion - the great majority of which ($8.6 billion) came from advertising. Mobile ad revenues contributed 84% of total advertising revenues, up from 80% in the same period past year.
Facebook shares were up 2.4 per cent at US$136.44 after the bell on Wednesday.
"With only a small fraction of the businesses on Facebook and Instagram advertising, we know we have a lot of opportunity and hard work ahead". It's trying to fix the rise of fake news and clickbait on its News Feed and, more recently, it's had to deal with the Zenimax lawsuit against Oculus. Speaking to Recode, Facebook Chief Operating Officer Sheryl Sandberg said the company is considering whether to appeal. Investors took that news in stride, as Facebook's stock barely dipped and finished the day up 2 percent.
Facebook revealed these numbers as part of its Q4 2016 earnings report, which showed that the company generated $8.8 billion in revenue during the last three months of the past year, compared to $5.8 billion during the same quarter in 2015.
The impressive gain, representing straight quarterly revenue beat, was a record for the company, thanks to strong mobile video ads sales. Mobile ad revenue made up about 84 per cent of the company's total ad revenue. Although the growth rate was less than last quarter when the users were added at the rate of 4.67, the results posted by Facebook were awesome.
We'll report more from the earnings call later today.
Since the USA election in November, Facebook has come under intense scrutiny for its role in the distribution of fake news during the campaign cycle.
In the future, Facebook hopes to develop the use of Facebook Live, its live video broadcasting tool. Monthly active users also increased to 1.86 billion as of December 31, an increase of 17% year-over-year. It also said it had 1.15 billion daily users on mobile.
Facebook ended 2016 with cash and cash equivalents and marketable securities of $29.45 billion. That's a 128 percent jump when compared to profit performance in the same period a year ago.
"We've seen continued growth and engagements on our platform, and our ads business is doing well, too".