According to its latest results, Facebook has reported a profit increase alongside a massive growth in its user base.
Facebook Monthly Users near Two Billion, Profits Jump
Social media giant, Facebook has reported that the number of people using its platform has increased to 1.94 billion with close to 1.3 billion daily users.
Facebook also reported profits of just over $3bn in the first three months of 2017, a 76% year-on-year rise.
However, the US tech giant warned of a slowdown in ad revenue growth.
Revenue for the first quarter ending March 31 increased 49% to $8.03 billion up from $5.38 billion in the same period last year and going beyond the $7.83 billion predicted earlier by analysts.
The rise in revenue is the tech company’ s eighth quarterly growth in a row, attributed to sales in mobile video ads, include those on Instagram.
Revenue coming from mobile ads makes an estimated 85% of all ad sales in this first quarter, up from 84% in the last quarter and and up from 82% in the same period last year.
This year it is expected that Facebook global ad revenue will be $36.29 billion, according to predictions by forecasting company eMarketer. This would essentially make Facebook the second largest ad seller after Google.
In recent weeks, the company has faced increasing pressure over its approach to incidences of hate speech, self-harm and child abuse across the platform.
Chief executive Mark Zuckerberg announced on Wednesday that it was hiring an additional 3,000 people to moderate content on the social network.
Ad sales slowdown
With these latest figures, it would appear that a quarter of the world’s population uses Facebook each month with most users being from outside North America and Europe.
After announcing the results, Mr. Zuckerberg said the growth in the number of users would give the company an opportunity to grow into areas such as politics, healthcare and television.
“With this foundation, we are now focused on building community and there is a lot to do there,” he said.
Although Facebook ad revenues have shown significant growth, chief financial officer David Wehner said growth would slow over the rest of 2017.
He further insisted that Facebook could only squeeze so many ads onto users’ pages.
Martin Garner, a CCS Insight analyst said, “It is now evidential that the stellar results from Facebook last year represented the height of online advertising growth, as the company had warned.”
He added that it was important for the company to show that it could generate revenues from other products such as Instagram, Whatsapp, Messenger, video and virtual reality.