Facebook smashes Q3 earnings

Mark Zuckerberg happyFacebookFacebook CEO Mark Zuckerberg

Facebook just reported another blowout quarter as the company’s advertising revenue and audience continued to expand.

Facebook beat Wall Street’s targets for revenue and earnings per share in the third quarter, but shares of the company were essentially flat in after hours trading on Wednesday after initially falling 2% when the results were announced.

Here are the key numbers for Q3:

  • Revenue: $7.01 billion vs. $6.92 billion expected, and up 56% from the year-ago period.
  • EPS (adjusted): $1.09 vs. $0.92 expected.
  • Monthly active users: 1.79 billion vs. 1.76 billion expected.
  • Daily active users: 1.18 billion vs. 1.16 billion expected.

Facebook gained 80 million monthly users in the third quarter and for the first time now has more than 1 billion daily users on mobile. Its mobile ad business brought in $5.7 billion, which was 84% of its total ad revenue versus 78% in the year-ago period.

Facebook, which already boasts the world’s largest social network, continued to expand its audience during the third quarter:

Perhaps more importantly, the ratio of daily users to monthly users — the best way to measure Facebook users’ level of engagement with the service — held steady again at 66% despite worries from Wall Street that increased competition from the likes of Snapchat is stealing away people’s attention.

Shares of Facebook are up roughly 5% over the past three months, outperforming the Nasdaq Composite and the Dow Jones Industrial Average, and reflecting Wall Street’s continued faith in the world’s largest social network.

Business Insider will be covering Facebook’s results live, including its earnings call, so hit refresh or click here for the latest updates.

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