Facebook beats earnings estimates; reaches 1.65bn users

Rachael Micallef
By Rachael Micallef | 28 April 2016
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Facebook has exceeded its Q1 earnings estimates after reaching $5.38 billion in revenue and reaching 1.65 billion monthly users.

The revenue boost is a 52% jump year on year, with net income increasing 195% to 1.5 billion.

The company's user growth also followed its revenue growth, with monthly active users increasing15% year on year and daily active users reaching 1.09 billion, an increase of 16% year on year.

Mobile users also grew, with mobile daily active users reaching 989 million, an increase of 24% year on year and mobile monthly active users reaching 1.51 billion, an increase of 21% year on year.

Advertising revenue reached 5.2 billion and increase of 57% year on year.

Mobile advertising represented 82% of advertising revenue for Q1, up from 73% of advertising revenue in the first quarter of 2015.

Facebook founder and CEO Mark Zuckerberg says the result are a great start to the year.

"We're focused on our 10 year roadmap to give everyone in the world the power to share anything they want with anyone."

Mark Zuckerberg Results FB post

The company also announced a proposal for the creation of a new class of non-voting capital stock, called 'class C' stock, in order to keep Zuckerberg in control of the company.

For each outstanding class A and class B share held by our stockholders, Facebook will issue two new class C, non-voting shares as a one-time stock dividend. It means Zuckerberg will be able to continue to run the company without pressure from investors on near-term earnings results.

“Everything we do at Facebook is focused on our mission to make the world more open and connected,” Zuckerberg says.

“To maintain our focus on this mission, we have always been a founder-led company. This structure has helped us resist the short term pressures that often hurt companies.”

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