Facebook posts USD8 billion revenue in Q1 as mobile growth widens


Facebook Inc has many reasons to be thankful. For the first quarter of the year, total revenue came in stronger than expected at USD8 billion.

This is a massive record compared to USD5.3 billion posted for the quarter in 2016.

A major driver of this impressive result is its mobile advertising revenue which rose by 85% of advertising revenue for the first quarter of 2017, up from approximately 82% of advertising revenue in the first quarter of 2016.

Facebook will be a surprising pointer to what Alphabet Inc. parent company of Google Inc., posted last week. While Alphabet is posting a year on year decline in its advertising revenue, Facebook seems to see a surge in its revenue.

These two companies are however a little bit different from themselves going by the way and manner they earn advertising revenue. While Facebook’s channels are limited to Facebook and Instagram, Google has a massive network of publishers that it relies on to serve ads. However, Facebook has a controlled platform with total ownership of all its channels.

The company said it invested USD1.27 billion capital expenditure for the quarter, a pointer to the fact that it might be announcing something big before the end of the current quarter.