Facebook's Q3 earnings call shows a company that's growing unstoppably, and video content as king of the internet. The results were such that they beat analysts’ expectations in pretty much every aspect, which in turn saw the company’s shares rise to an all-time high.
Figures regarding video watching were astonishing, but more on that below.
According to the Q3 earnings report, Facebook has had revenue of $4.5 billion (£2.95bn), which represents a 41 per cent increase year-on-year, and a significant increase on $4.37 billion (£2.82bn) – the analysts’ prediction.
Adjusted earnings per share (EPS) was $0.57, slightly above the analysts’ prediction of $0.52. Facebook recorded 1.55 billion monthly active users, where analysts expected 1.52.
The after-hours stock settled around 4 per cent after the earnings call. UK’s Business Insider writes that, at about 107.7, Facebook's stock is at a new all-time high and shares are up roughly 25 per cent since mid-August.
Video is where Facebook really shines – in the earnings call, the social media giant says it now has eight billion views a day – a 100 per cent increase on the 4 billion views per day it had in April. Those views come from the 500 million users who are watching videos every day.
"We're just so early in this right now," CEO Mark Zuckerberg said when asked about video on the call. "It's pretty amazing how quickly it's growing. But there's a lot more to do."
Facebook has had 1.01 billion active users on average in September, which is an increase of 17 per cent year-on-year.