Facebook’s Push Into Video Ads Makes Quarterly Profits Jump
Facebook crushed quarterly profit and revenue estimates on Wednesday as the social media giant’s push into video ads helped bolster its fast-growing mobile ad business.
The company’s shares were up 1.4% at $168 after the bell. Through Wednesday’s close, the stock had climbed nearly 44% this year.
Facebook said about 2.01 billion people were using its service monthly as of June 30, up 17% from a year earlier.
The social media giant said in June it had surpassed the 2-billion user mark.
Mobile ad revenue accounted for 87% of the company’s total advertising revenue of $9.16 billion in the latest quarter, up from 84% a year earlier.
Analysts on average had expected total ad revenue of $9.02 billion, according to data and analytics firm FactSet.
Get Data Sheet, Fortune’s technology newsletter.
Facebook (FB) is expected to generate $36.29 billion in net digital ad revenue this year, a 35% jump from 2016, according to research firm eMarketer.
Net income attributable to Facebook shareholders rose to $3.89 billion, or $1.32 per share, in the second quarter ended June 30 from $2.28 billion, or 78 cents per share, a year earlier.
Total revenue rose 44.8% to $9.32 billion.
Analysts on average had expected earnings of $1.13 per share and revenue of $9.20 billion, according to Thomson Reuters I/B/E/S.
In the first quarter, Facebook changed the method it reports earnings, focusing on Generally Accepted Accounting Principles (GAAP) earnings instead of non-GAAP.