High analyst expectations mean the pressure has been on for Facebook in Q2 2016, and the company’s focus on video services, particularly for mobile users, is paying off.
On an earnings call Wednesday (July 27), Facebook reported its revenues for Q2 2016 at $6.4 billion, up from $4.04 billion in 2015 and exceeding analyst predictions of $6.02 billion. Revenues increased by 59 percent year on year.
Net income increased by 186 percent year on year, from $719 million in 2015 to $2.05 billion in 2016. Advertising revenue also saw a big jump of 63 percent year on year, from $3.8 billion in 2015 to $6.2 billion in 2016, according to Seeking Alpha.
Facebook has been in a heated race with Snapchat for user engagement, according to Citron Research’s Andrew Left, and after an attempt to buy the company in 2013. But Facebook is holding its own.
Mobile daily active users reached over 1 billion, on average, in June 2016, which is an increase of 22 percent year on year, and mobile advertising revenue accounted for 84 percent of total revenues.
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