Earlier in the week we reported that Twitter stock had fallen following a lackluster Q2 report, but another social media platform is doing much better. Facebook shares hit an all-time high following its quarterly report. The company's revenue beat the expectations of analysts and rose to $6.4 billion, an increase of 59% compared to the same time last year.
In addition to soaring revenue, Facebook has continued to grow its user base. Monthly active users have grown to 1.71 billion, an increase of 15% year-over-year, and mobile monthly active users have grown to 1.57 billion, an increase of 20%. Daily users have increased to 1.13 billion, an increase of 17% and daily mobile users has grown to 1.03 billion, an increase of 22%. In addition to Facebook's own main platform growth, many of its properties have experienced growth as well. Mark Zuckerberg recently announced that Messenger has exceeded one billion monthly users. Much of the company's success is due to its growth among mobile users. Advertisers are increasingly focusing their spending on mobile platforms. The quarterly report states that 84% of the company's advertising revenue is from mobile advertising, which accounts for the lion's share of its revenue.
Like Twitter, Facebook is also putting a lot of emphasis on video content as a means of growing revenue. In addition to allowing users to upload prerecorded content to the platform, the company also recently launched Facebook Live which allows users live stream video from their mobile devices. The company is currently courting content creators in an attempt to popularize Facebook Live. If the platform takes off, the company's revenue could continue its upward climb as it is able to move strongly into that field.
Although Facebook will be up against some major competition from video platforms like YouTube, CEO Mark Zuckerberg stated his satisfaction with the company's progress so far. "Our community and business had another good quarter," Zuckerberg stated, "We're particularly pleased with our progress in video as we move towards a world where video is at the heart of all our services." Many analysts, including Mark Mahaney at RBC Capital Markets, believe Facebook is well positioned to grow as a video platform.
Is Facebook's growth going to continue or is the platform reaching its peak? Do you use the social media platform often? Why or why not? Leave your comments below.