Facebook has reported that its profits for the fourth quarter of 2015 more than doubled.
Facebook Announces $1.56bn In Fourth Quarter Profits
The social media giant said that in the three months to December, quarterly profits jumped to $1.56bn up from $701m.
Facebook also announced that mobile advertising made up 80% of the company’s advertising revenue, while mobile ad revenues constituted just 69% in 2014.
In after-hours trading at the New York Stock Exchange, shares jumped by 8.7%, better than was expected.
The company’s annual revenue increased by 44% up to $17.9bn while net profit rose by $800bn to $3.7bn.
These reports indicate that the social media giant has superseded analysts’ expectations for ten quarters consecutively.
Analysts termed the company’s performance as phenomenal, while others see the advertising revenue growth as particularly impressive.
For most of 2015, Facebook spent more than its revenue grew. This was attributed to increased hiring and investment in projects including satellite internet and virtual reality.
In the fourth quarter however, the company has seen revenues rise by 52% while costs rose by just 21%.
Mobile taking the lead
According to Ken Sena of Everscore ISI, Facebook is providing a very efficient method of advertising through mobile.
He said, ‘They are making large investments and this is paying off, going by their quarterly earnings.”
Facebook’s monthly active users rose by 1.4% to hit the 1.59 billion mark in this fourth quarter. In the same period in 2014, the number of active monthly users using mobile devices to access Facebook was 1.44 billion, an impressive 21% increase in active monthly mobile users.
According to Mark Zuckerberg, Facebook CEO, 2015 was a great year as the community continued to grow and the business continued to thrive.
Although investors are enthusiastic, Facebook is yet to tap into many potential revenue streams including virtual reality, messaging and video.