Mark Zuckerberg defends Facebook's Oculus investment and asks investors for 'patience'

Mark Zuckerberg defends Facebook's Oculus investment and asks investors for 'patience'

IT

As its Q4 2016 earnings report shows, the company once again raked in cash hand over fist, with $8.8 billion in revenue and $3.56 billion in profit.

Non-GAAP earnings were $1.41 per share on a revenue of $8.81 billion.

Analysts polled by Thomson Reuters expected the Facebook to earn $ 1.31 per share on revenue of $ 8.51 billion for the fourth quarter.

"With only a small fraction of the businesses on Facebook and Instagram advertising, we know we have a lot of opportunity and hard work ahead".

Mobile continued to play a key role in revenue growth during the last three months of 2016, with mobile ads accounting for 84% of total ad revenue during the quarter. It reported 1.23 billion daily active users, up 18 percent from a year ago. Out of those, the majority of users (1.1 billion) are visiting Facebook via mobile, up 23 percent from the fourth quarter of 2015.

Facebook's ability to keep growing its community while also creating more advertising products continues to help the company beat Wall Street expectations for sales growth. The company's full year profit came to $10.2 billion, up a whopping 177 percent from $3.7 billion a year prior.

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Facebook also expects capex to grow 55-67 percent to a range of $7 billion-$7.5 billion, as it plans to spend more dollars on data center/office build-outs. Facebook's monthly active user base remained strong across all platforms, including Instagram, WhatsApp and Messenger. Facebook shares were up 2.2% in early after-hours trading Wednesday.

Capital spending continues to grow quickly, from $692 million a year ago to $1.3 billion in the fourth quarter. Additionally, Facebook's average revenue per user in U.S. and Canada climbed to $20 in the quarter, which is significantly higher than its other global territories.

Facebook the world's leading social media network announced its Q4 results for 2016.

Notably, these numbers don't take into account today's court-awarded penalty of $500 million towards Facebook-subsidiary Oculus and are mostly driven by Facebook's mobile users.

The major objective of the network is to focus on video across Facebook family of apps.

  • Kyle Warner