 shares jumped nearly 8 percent in pre-market trading, after the company recorded a 70 percent profit boost in the second quarter.){kind=link}
Facebook (NASDAQ:FB) shares jumped nearly 8 percent in pre-market trading, after the company recorded a 70 percent profit boost in the second quarter.
The higher-than-expected profit figure was driven by a sharp increase in sales of mobile video ads, which accounts for 87 percent of the company’s advertising revenue. Total revenue from ads hit $9.16 billion over the past three months, up from 84 percent on a year earlier.
Total revenue rose 44.8 percent to $9.32 billion from the same period in 2016, which Facebook posting a 71 percent profit increase to $3.89 billion.
MFacebook is expected to generate $36.29 billion in net digital ad revenue this year, a 35 percent jump from 2016, according to the research firm eMarketer.
Facebook recorded 2.01 billion people using its service in June, a 17 percent increase from a year earlier.
Facebook’s CEO, Mark Zuckerberg, said the company had a “good second quarter and first half of the year”, adding that “Our community is now 2 billion people and we’re focusing on bringing the world closer together.”
“Clearly, the biggest driver of growth is, overall, Facebook News Feed,” chief financial officer David Wehner said. “Instagram is making a contribution, and an increasing contribution.”
Facebook shares are currently trading up 6.9 percent in pre-morning trade (1348GMT).