Facebook posts USD8 billion revenue in Q1 as mobile growth widens

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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.