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| Facebook hails 'strong quarter' as users hit 1.49 billion | Facebook hails 'strong quarter' as users hit 1.49 billion |
| (35 minutes later) | |
| Facebook boss Mark Zuckerberg has hailed "another strong quarter" after reporting the number of people who check into the social network at least monthly grew 13% to 1.49 billion. | Facebook boss Mark Zuckerberg has hailed "another strong quarter" after reporting the number of people who check into the social network at least monthly grew 13% to 1.49 billion. |
| The rise in monthly active users helped drive second quarter revenue up 39% year-on-year to $4.04bn (£2.6bn). | The rise in monthly active users helped drive second quarter revenue up 39% year-on-year to $4.04bn (£2.6bn). |
| Mobile advertising revenue was the biggest factor, accounting for three quarters of total advertising revenue. | |
| Its results beat forecasts, but shares fell 2.7% in after hours trading. | |
| Facebook shares, which are currently trading at around $97 a share, have risen 24% so far this year, easily beating the 7.9% rise in the Nasdaq over the same period. | Facebook shares, which are currently trading at around $97 a share, have risen 24% so far this year, easily beating the 7.9% rise in the Nasdaq over the same period. |
| Analysts said the share price drop was linked to the high expectations for the firm, which typically tends to beat forecasts, as well as concern over its high expenses. | Analysts said the share price drop was linked to the high expectations for the firm, which typically tends to beat forecasts, as well as concern over its high expenses. |
| Higher spending | Higher spending |
| Facebook said that costs and expenditures for the quarter had surged by 82% to a hefty $2.8bn. | Facebook said that costs and expenditures for the quarter had surged by 82% to a hefty $2.8bn. |
| As a result, net income fell 9.1% to $719m - equal to 25 cents a share - but the firm said if various expenses were excluded earnings would have been 50 cents a share. | As a result, net income fell 9.1% to $719m - equal to 25 cents a share - but the firm said if various expenses were excluded earnings would have been 50 cents a share. |
| The higher spending was for "growth we need now and in the future," Facebook's chief operating officer Sheryl Sandberg told Reuters. | The higher spending was for "growth we need now and in the future," Facebook's chief operating officer Sheryl Sandberg told Reuters. |
| The social network giant warned in April that expenses could rise by up to 65% due to various investments in new staff, changes aimed at improving mobile revenue and the cost of improving products such as messaging service WhatsApp and photo-sharing app Instagram. | The social network giant warned in April that expenses could rise by up to 65% due to various investments in new staff, changes aimed at improving mobile revenue and the cost of improving products such as messaging service WhatsApp and photo-sharing app Instagram. |
| "This was another strong quarter for our community," said Mr Zuckerberg. | "This was another strong quarter for our community," said Mr Zuckerberg. |
| "Engagement across our family of apps keeps growing, and we remain focused on improving the quality of our services." | "Engagement across our family of apps keeps growing, and we remain focused on improving the quality of our services." |
| Analysis: Dave Lee, North America technology reporter, San Francisco | Analysis: Dave Lee, North America technology reporter, San Francisco |
| Mark Zuckerberg could be forgiven for cursing Wall Street under his breath. | Mark Zuckerberg could be forgiven for cursing Wall Street under his breath. |
| The social network's share price has dropped - despite beating expectations in revenue, mobile advertising, growth and almost every other measure a web service can offer as a sign of good health. | The social network's share price has dropped - despite beating expectations in revenue, mobile advertising, growth and almost every other measure a web service can offer as a sign of good health. |
| But investors and analysts don't like the look of the company's costs and expenses: $2.76bn for the quarter, up from $1.5bn this time last year. | But investors and analysts don't like the look of the company's costs and expenses: $2.76bn for the quarter, up from $1.5bn this time last year. |
| The company is investing heavily, in data centres and new methods of getting people online, which investors understand, but there is unease over the sheer size of the extra spending. | The company is investing heavily, in data centres and new methods of getting people online, which investors understand, but there is unease over the sheer size of the extra spending. |
| But given Twitter's problems earlier in the week, where it admitted user growth is desperately slow, the fact that Facebook, the world's biggest social network, is still piling on new users… that's impressive. | But given Twitter's problems earlier in the week, where it admitted user growth is desperately slow, the fact that Facebook, the world's biggest social network, is still piling on new users… that's impressive. |
| Follow Dave Lee on Twitter @DaveLeeBBC | Follow Dave Lee on Twitter @DaveLeeBBC |