Facebook Announces its Q4 Earnings with $8.81 Billion Revenue

Henrietta Brewer
February 11, 2017

The social network turned media giant turned virtual reality proponent impressed Wall Street investors Wednesday with its fourth quarter of 2016 and full-year report, where it hit a new record and beat all expectations. Analysts had been expecting earnings of $1.30 per share on $8.51 billion in revenue.

"Our mission to connect the world is more important now than ever", said CEO Mark Zuckerberg.

For 2016, Facebook's revenue was $26.9 billion - up 57 percent from 2015.

The number of daily active users grew by 18 percent year over year to reach 1.23 billion, up from 1.18 billion last quarter.

GAAP earnings per share rose 124% year over year to $1.21 per share, while net income rose to $3.6 billion from $1.6 billion in the same quarter a year before.

"In Q4, our top 100 advertisers represented less than a quarter of our ad revenue, which is a decline from Q4 a year ago", Sandberg said.

FB is expected to report full-year revenue at $23.35 billion for 2016, more than five times the $5.01 billion it generated while going public back in 2012.

Facebook still maintains its status as the biggest social media platform in the world with a staggering 1.86 billion community members across the world. 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. As such, while these shares, now at all-time highs, aren't aren't cheap today, you would be hard-pressed to find another large-cap tech stock with a more attractive combination of long-term growth potential and value.

Facebook's 231 million USA and Canada users are by far the biggest contributors to its overall revenue.

Sandberg told analysts the last quarter, "political spending even within the U.S. alone was not a top-10 vertical for us".

The best part of the result was that 84% of its ad revenue comes from its mobile platform, which shows how successfully Facebook shifted to the mobiles. Video ads command the highest rates, and broadband access could help Facebook earn more from users in remote areas.

Other reports by iNewsToday