Facebook Raked in $9.16 Billion in Ad Revenue in the Second Quarter of 2017

It now has 1.32 billion daily active users

Facebook is getting ready to roll out original video content.
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Facebook reported advertising revenue of $9.16 billion in the second quarter of 2017, a 47 percent increase over the same quarter last year.

In its quarterly earnings report released today, the social giant beat analysts’ expectations with a total revenue of $9.3 billion—an increase of 45 percent year-over-year. Mobile now makes up around 87 percent of the company’s overall ad revenue, up from 84 percent in second-quarter 2016.

Earnings per share for the second quarter totaled $1.32, up from 78 cents during the same period last year.

The company also reported an increase in both daily and monthly active users, with daily active users totaling an average of 1.32 billion in June for a 17 percent increase year-over-year. Monthly active users also increased 17 percent year-over-year to total 2.01 billion as of June 30. (Facebook officially announced last month that it had hit the 2 billion mark.)

“We had a good second quarter and first half of the year,” Facebook CEO Mark Zuckerberg said today in a statement. “Our community is now two billion people and we’re focusing on bringing the world closer together.”

Facebook also reported an overall growth in head count. As of the end of last month, the company had 20,658 employees—an increase of 43 percent year-over-year.

While second quarter earnings were plenty strong, it does show a bit of deceleration—the company reported a 59 percent increase in overall revenue between the second quarters of 2015 and 2016.  That year-over-year deceleration falls in line with what a few notable agencies reported to Adweek late last month—slower growth in cross-client ad spend in the second quarter compared to previous years. (For years, the company has consistently reported an acceleration of revenue growth. Late last year, Facebook executives have warned that advertising revenue growth would slow, given the lack of room for ad load growth.)

“As for revenue, there are couple of things to look at,” Forrester Research analyst Melissa Parrish noted ahead of today’s earnings. “First, the leadership has been saying for a while to expect revenue growth to slow a bit as ad loads come down and I expect we’ll get an update on those projections and some discussion of how much their recent efforts to improve the advertising experience—for both marketers and users—has affected these numbers. Second, Facebook is making a big push in video and with that product push comes costs.”

Parrish also wondered how long it would before these pricey video ad products offset the costs associated with supporting them.