Facebook Inc (FB) Q2 2017 Earnings Surprise Wall Street

Facebook Inc (FB) Q2 2017 earnings were released after closing bell tonight, and the social media firm posted earnings of $1.32 per share on $9.3 billion in revenue. Consensus estimates stood at $1.12 per share in GAAP earnings on $9.2 billion in revenue. In the year-ago quarter, Facebook Inc (FB) reported 78 cents per share in earnings on $6.4 billion in revenue.

Facebook Inc (FB) Q2 2017 earnings

Facebook Q2 2017 earnings revealed ad revenue of $9.16 billion, up 47% from $6.2 billion in last year’s second quarter. Payments and other fees revenue fell 20% year over year to $157 million. Mobile ad revenue made up about 87% of ad revenue for the second quarter, a slight increase from 84% in last year’s second quarter. Wall Street had been expecting mobile ad revenues to reach $7.68 billion

“We had a good second quarter and first half of the year,” said Facebook Inc (FB) Founder and Chief Executive Officer Mark Zuckerberg in a statement. “Our community is now two billion people and we’re focusing on bringing the world closer together.”

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Facebook Inc (FB) also beats on monthly active users

The social media firm had 132 daily active users on average during June, marking a 17% increase year over year. Monthly active users also grew 17% to 2.01 billion as of the end of June. Wall Street had been looking for 1.98 billion monthly active users, so Facebook has come out ahead of the consensus as provided by StreetAccount.

Facebook Inc (FB) did not break out Instagram revenues, as many analysts and investors had been hoping. New revenue recognition rules are set to go into effect at the beginning of next year, so the company may have to start doing that. However, it hasn’t pleased investors by doing it during today’s report. However, we do have some third-party insight on Instagram.

“Instagram also continues to grow as the photo sharing platform pulled in over 129.7 million users in Q2 2017, which is a 3.76% increase from 125 million users the quarter prior, Verto Analytics CEO and Founder Hannu Verkasalo said before Facebook Inc (FB) Q2 2017 earnings were released. “Instagram also experienced an increase in total time spent per user per month in June (136.8 minutes) compared to March (130 minutes).”

He also noted that Instagram has set itself up as the biggest competitor for Snapchat and also a major threat to Snapchat’s popularity.

Following Facebook Inc (FB) Q2 2017 earnings, the company’s stock rose by as much as 0.72% to 167.02 in after-hours trading.