Facebook smashes estimates to post blockbuster first-quarter earnings

facebook stellar q1 2016 results zuckerberg
Facebook has bucked the tech earnings slump currently plaguing the likes of Apple, Alphabet, and Twitter, and could be set to reach an all-time high share price thanks to a stellar first quarter.

The company beat analysts’ expectations by posting revenue of $5.38 billion (up 52 percent year-over-year), with most predictions expecting a total of $5.26 billion. Additionally, Facebook’s net income almost tripled in comparison to the first quarter of last year to hit $1.51 billion.

Crucially, the world’s biggest social network continues to attract more users, its overall user base reaching 1.65 billion in the quarter, compared to 1.44 billion a year ago. Not only that, people are also using Facebook more, with the company reporting that 66 percent of monthly active users (MAU) logged on to the platform daily, an increase of 1 percent from the same period last year. CEO Mark Zuckerberg stated that people were spending more than 50 minutes per day across the company’s suite of apps, including Facebook itself, Messenger, and Instagram.

The revenue Facebook derives from each user (that’s you and your friends) has also risen to an average of $3.32, from $2.50 a year earlier.

Amid all the glowing statistics, one important factor kept popping up; mobile. Facebook noted that its mobile MAUs grew 21 percent year-over-year to reach 1.51 billion. Alongside that jaw-dropping growth came an increase in lucrative mobile ad spend. The company reportedly made 82 percent of its $5.2 billion in ad revenue from mobile this quarter. Compare that to the soft brand spending power reported by rival Twitter, and you begin to get an idea of who really rules the roost in the smartphone sphere.

On the topic of rulers, its seems Facebook’s founder and CEO wants even more control over his company. In a note posted on the Facebook Newsroom, Mark Zuckerberg revealed that the company is planning to create a new class of non-voting shares. Meaning Zuckerberg can still give away 99 percent of his wealth using non-voting shares, and continue to retain a tight grip over Facebook with his voting stock.

After hearing the first-quarter figures, investors will likely back the move. After all, Zuckerberg’s aggressive pursuit of advertising has evidently reaped massive rewards for Facebook.

Despite all the good news, there was no mention of Oculus Rift’s impact on revenue. The VR headset’s recent launch was plagued with mishaps, mainly due to shipping delays, and its lack of presence during the earnings call will do little to alleviate concerns about its future. Nonetheless, Facebook did emphasize that the Oculus acquisition was a long-term investment that would not significantly impact its 2016 revenue.

News

The U.S. Senate really doesn’t like Facebook’s Libra cryptocurrency plans

Facebook Libra had its first big regulatory test when Calibra head David Marcus appeared before the Senate Banking Committee. It didn’t go well. Senators of both parties had major concerns about Facebook's proposed cryptocurrency.
Gaming

Take to the virtual skies with these free flight simulators

You don't have to spend the entirety of your paycheck to become a virtual ace, at least when it comes to flight simulation. Our list of the best free flight simulators will let you unleash your inner Maverick.
Mobile

Text up a storm with the best messaging apps for iOS and Android

These days, most people tend to favor digital messages over phone calls. We have the best messaging apps that allow you to share photos and documents, send text messages, and more with end-to-end encryption.
News

Facebook says it won’t launch Libra until regulators are happy

Facebook says it won’t roll out its Libra cryptocurrency until it’s fully addressed regulatory concerns – though it added that regulation of the currency itself would largely happen in Switzerland, not the U.S.
How-To

Stop Facebook from tracking you and using targeted ads with these tips

Facebook and businesses that use the site track what pages you like, your political affiliation, and even try to guess your race. All of this is done so the site can target you with relevant ads. Here's how to opt out.
Social Media

YouTube offers creators more ways to boost their bank accounts

Whether you're a top YouTube creator or just breaking into the game, the video-streaming site has some new features designed to help you please your fans and increase your bank balance.
News

President Trump attacks Facebook Libra, says it’s not dependable like the dollar

President Trump attacked Facebook's new Libra cryptocurrency on Thursday, claiming it will have "little standing or dependability" and that Facebook would need to seek a banking charter if it wanted to move forward.
Social Media

The FTC will hit Facebook with a $5 billion fine over privacy violations

Facebook has agreed to a $5 billion settlement with the Federal Trade Commission (FTC) over its numerous “privacy missteps." Once it goes through, this would be the largest FTC fine for a major technology company – and a huge chunk of…
News

Lua uses animated emotions to help you keep your plants happy and healthy

The Lua Smart Planter is currently seeking funding on Indiegogo to make this smiling plant pot a reality. The device helps you take care of your plants by showing their needs through a series of animated faces.
Mobile

Flex your thumbs (and your brain) with these fun texting games

Gaming consoles keep getting more advanced, but you can still have fun with the good old Latin alphabet. Here are our picks for the best texting games, so you can make the most fun out of that limited data plan or basic cell phone.
Social Media

Twitter’s mobile-inspired dark mode desktop makeover isn’t just about looks

Twitter.com may have a new look, but it's one that already feels familiar. The new design for Twitter's desktop version borrows heavily from the platform's mobile apps, with a sleeker look, a new dark mode, and easier navigation.
Digital Trends Live

Digital Trends Live: Twitter’s redesign, Libra’s possible delay, Neuralink

On this episode of DT Live, we take a look at the biggest trending stories in tech, including a Twitter redesign, Facebook's delay of Libra, Neuralink's first public event, growing food in space, and the 50th anniversary of Apollo 11.
Social Media

Instagram is crashing repeatedly for some users. Here’s the latest on the outage

Thousands of Instagram users said Tuesday that the social media app was repeatedly crashing or not opening at all, the third time in just over a month that the social network has experienced issues.
Web

Dirty deeds are uncovered dirt cheap with these online background check resources

There are plenty of reasons for carrying out a background check, and not all of them are creepy. Here are several methods to run a background check on someone online, whether you need to vet a potential hire or a new babysitter.