Facebook just can't stop adding friends.
The tech giant yet again beat its quarterly earnings expectations, reporting revenue of $7.01 billion and a total monthly active user base of 1.79 billion. However, shares fell during after-hours trading, after Facebook executives warned of a slowing ad load.
According to Facebook, which released its third-quarter earnings today, revenue increased year-over-year by 56 percent, up from $4.5 billion during the third-quarter of 2015. Earnings per share were $1.09, up from $.57 during the same period last year. (Analysts had estimated revenue of $6.92 billion and earnings per share of $.97.)
Advertising revenue also skyrocketed to $6.82 billion, up 59 percent from the third quarter of 2015. Mobile advertising now represents around 84 percent of total ad revenue, up from 78 percent in the third-quarter of 2015. Daily and monthly active users on mobile both also increased. Mobile DAUs increased 22 percent to 1.09 billion, while monthly DAUs were up 20 percent to 1.66 billion.
"We had another good quarter," Facebook CEO Mark Zuckerberg said in a statement. "We're making progress putting video first across our apps and executing our 10 year technology roadmap."
Advertiser demand remained strong in the third quarter, with time spent on the platform increasing. Ad load also increased, including ad load on desktop, which grew 18 percent. Facebook chief financial officer David Wehner said it was notably higher growth than in recent quarters. Price per ad was up 6 percent, while total impressions were up 50 percent, thanks to ads both in the Facebook news feed and on Instagram.
However, on an earnings call with shareholders on Wednesday afternoon, Wehner said investors should expect slower revenue in future quarters, citing limits on ad load on the platform. Shares fell by more than 8 percent in after-hours trading to $116.73.
The company also cited growth in video, which continued to be an area of increased focus for the company. On the earnings call, Facebook COO Sheryl Sandberg said marketing shifts take time.
"We're excited for the world's largest advertisers to realize that the small screen is big," she said.