It’s been a busy few months for the Palo Alto-based firm Facebook with the launch of Reactions, Live Video and shipping started for Oculus Rift. The high momentum at the tech firm was also seen in its first quarter results for 2016.
Logging in an advertising revenue of USD 5.2 billion in Q1, Facebook recorded an increase of 57 per cent year-over-year from USD 3.3 billion. Advertising has been paying off for this social media giant at a time when other competitors are still struggling to keep up.
Mobile advertising revenue represented approximately 82 per cent of advertising revenue for the first quarter of 2016, up from 73 per cent of advertising revenue in the first quarter of 2015.
“We had 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,” said Mark Zuckerberg, Facebook founder and CEO.
Facebook now has 1.65 billion users every month with 1.09 billion daily users on average for March 2016, an increase of 16 per cent year-over-year. About 989 million users on average are logged in on mobile for March 2016, an increase of 24 per cent year-over-year. Monthly mobile users were 1.51 billion as of March 31, 2016, an increase of 21 per cent year-over-year.
Facebook has also proposed to launch a new class of non-voting capital stock. The press statement says, ” We also announced today that our board of directors has approved a proposal to amend and restate our existing certificate of incorporation to create a new class of non-voting capital stock, known as the Class C capital stock. If the proposal is approved, we intend to issue two shares of Class C capital stock as a one-time stock dividend in respect of each outstanding share of our Class A and Class B common stock. This proposal is designed to create a capital structure that will, among other things, allow us to remain focused on Mr Zuckerberg’s long-term vision for our company and encourage Mr Zuckerberg to remain in an active leadership role at Facebook.”
Mr Zuckerberg said in a note, “When I look out at the future, I see more bold moves ahead of us than behind us. We’re focused not on what Facebook is today, but on what it can be, and what it needs to be for our community. That means investing in areas like spreading connectivity, building artificial intelligence and developing virtual and augmented reality. I am committed to our mission and to leading Facebook there over the long term.”