Facebook beats across the board for Q2 with $9.32 billion in revenue

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Facebook CEO Mark Zuckerberg.
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Facebook

Facebook beat Wall Street’s expectations across the board for its second quarter earnings on Wednesday with $9.32 billion in revenue driven primarily by mobile ads.

The world’s largest social network maintained its steady 17% year-over-year user growth, with 66% of its 2.01 billion users visiting the service every day.

Shares dipped roughly 4% in after-hours trading over apparent confusion related to the company’s recent switch to reporting GAAP numbers. Bloomberg, which is widely relied on by traders for financial info, initially reported that Facebook had missed earnings targets, but quickly issued a correction.

Facebook’s stock is up roughly 40% this year, demonstrating assurance from investors that the company can diversify the sources of its revenue growth and continue to grow its user base. Traders have been the most bullish on the stock in years heading into Wednesday’s earnings.

On a conference call with analysts, CFO Dave Wehner reiterated that Facebook expects a slowdown in revenue growth this year as it reaches the limit of the number of ads it can show in the News Feed. CEO Mark Zuckerberg said he expects video to be the main source of growth in the near future and that the company is investing heavily in monetizing Messenger and WhatsApp.

Here are the key numbers for Facebook’s Q2 earnings:

    EPS (GAAP): $1.32 vs. $1.13 expected, up 69% from the year-ago period. Revenue: $9.32 billion vs. $9.2 billion expected, up 45% from the year-ago period. Monthly active users: 2.01 billion, up from 1.94 billion last quarter. Daily active users: 1.32 billion, up from 1.28 billion last quarter.

Here are some charts showing Facebook’s growth from Q2:

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Facebook

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Facebook

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Facebook

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Facebook