Facebook’s community continues to grow, and with it, so does its bank account.
Facebook’s second-quarter net profits gained 186 percent to $2.06 billion, or 71 cents a diluted share, as revenues increased 59 percent to $6.44 billion.
The lion’s share of the company’s top line comes from advertising revenues, which have continued to grow rapidly as much of the rest of the media world struggles to hold on to its share of ad dollars.
Investors liked what they saw and sent share of Facebook up 5.4 percent to $123.34 in after-hours trading.
On a conference call, chief executive officer Mark Zuckerberg touched on the media world and Instant Articles, which allow publishers to publish content directly to Facebook. Zuckerberg said it was created in part to remove the 10 to 15-second lag time many readers experience when opening up a web view of an article in their mobile News Feed. He said Facebook was slowly getting more media partners, and eventually, he hoped this would translate into increased revenue for publishers — which will be welcome information to media outlets worried about sacrificing clicks to Facebook.
“I think one of the big things that we need to do is see if we can not only make this good for engagement for our partners, but a really positive business driver for them, too,” Zuckerberg said. “That’s something that I’m excited about, and we’ll hopefully have more news on that coming up.”
The comments from Zuckerberg and chief operating officer Sheryl Sandberg were similar to those they had made previously, with a heavy emphasis on the growing relevance of video and helping businesses make the transition into the mobile web.
Sandberg said mobile ad revenue made up approximately 84 percent of total ad revenue, and that there were 60,000 monthly active business pages on Facebook. She said not all of those were advertisers, but there was an opportunity to grow that, as more than a third of medium businesses in the U.S. don’t have a web site, which is to say nothing of an optimized mobile experience.
She also reaffirmed her goals of capitalizing on the shift to mobile, growing the number of marketers using Facebook’s ad products and making ads more relevant and effective.
Zuckerberg said 1.1 billion people use the platform every day, and he predicted that just as photos had eclipsed text in sharing online, video would soon eclipse images. To that end, Facebook has been pushing Facebook Live, its live-streaming video capabilities, in addition to 360 photos, which users can upload with a panoramic image.