Facebook Inc (NASDAQ: FB) once again proved on Wednesday that it can turn the audience into profit, posting quarterly results that confidently exceeded the Wall Street expectations.
The mobile app of the world's largest social network and the shift towards video content attracted new advertisers, and those who are already working with Facebook were forced to spend more.
" Facebook revealed that it is possible to be a giant and continue to innovate," - said Patrick Moorhead of Moor Insights & Strategy.
The company is best adapted to a shift towards mobile and video content than its competitor - Twitter Inc, which on Wednesday reported on the slowest revenue growth since the IPO in 2013.
Facebook had 84 % of the total advertising revenue on mobile advertising, compared with 76 % a year earlier. Total revenue from advertising jumped 63 % to $ 6.24 billion, topping analysts' average forecast of $ 5.80 billion, according to FactSet StreetAccount.
The number of monthly active users reached 1.71 billion as of June 30, up from 1.49 billion a year earlier. Facebook CFO David Winer called the Asia-Pacific region one of the most promising in terms of expanding the audience, especially noting India.
Facebook significant wins on the fact that advertisers are moving away from TV to the Internet and mobile platforms. The company strengthens its presence in the market of mobile video, where strong competition comes from Snapchat and YouTube. The social network also attracts advertisers to its new service video broadcasts Facebook Live.
The company's profit except for certain balance sheet items was 97 cents per share in the second quarter, which ended on 30 June. Analysts polled by Reuters on average expected a profit of 82 cents per share.
The net profit attributable to shareholders of Facebook, rose to $ 2.05 billion, or 71 cents a share, from $ 715 million, or 25 cents per share, a year earlier.
Total revenue increased by 59.2 % to $ 6.44 billion, while analysts on average forecast a figure of $ 6.02 billion.