Facebook has announced a revenue improvement which beats expectation far pulling up an astonishing 51.7 per cent jump in revenue for the final quarter of 2015. This leap in revenue could be traced down to an improved mobile app and new advertising formats had necessitated a good bounce in advertising sales.
$5.84 billion marks the new heights the company’s total revenue climbed to from $3.85 billion a year earlier, with ad revenue going on the rise of 56.8 per cent to $5.64 billion during the Christmas shopping period.
“It’s much stronger ad growth than we were expecting,” said Ken Sena, an analyst at Evercore ISI.
“It signifies the importance of what they’re providing to advertisers,” he said. “They’re providing a very efficient method of distribution for them, they’re making big investments and evidenced by their quarterly performance it seems to be working.”
Facebook is accredited as the company with the world’s popular smartphone app while it has been reaping huge gains from a positive bump in video views which has got the advertising dollars pouring in.
Facebook revealed by 31st of December month that it had 1.59 billion monthly active users an improvement of 14 per cent from the end of 2014.
Going into details of that figure, 1.44 billion made use of the service on mobile devices, this accounts to 21 per cent.
Expectation from analysts came at 1.58 billion monthly active users as almost 1.43 billion accessed the service via tablets and smartphones drawing from facts released by research firm FactSet StreetAccount.
“It’s phenomenal that they’re accelerating to that level of growth,” said Rob Sanderson, an analyst at MKM Partners. “I don’t think there’s going to be too many people crying for them to start monetising other properties anytime soon because the core business is so strong.”
The company has began the approached to commercializing some of its other units, such include photo-sharing app Instagram, which coasted past 400 million users last year even starting to sell ads in September.