Facebook Hits $4.04 Billion Revenue; Virtual Reality is the Next Big Thing

Facebook Co-founder and CEO Mark Zuckerberg, has outlined the current state of the company along with COO, Sheryl Sandberg and CFO David Wehner.

Conforming with the expectations, Facebook recovered from last quarter’s miss, beating the estimates in Q2 2015 with $4.04 billion in revenue and $0.50 earnings per share. The company now has 1.49 billion monthly users, up 3.47% quarter over quarter, which was a bit slower than Q1’s 3.6% growth.

It was Facebook’s strong mobile ad business that helped the company beat analysts’ revenue estimates after the company narrowly missing sales forecasts last quarter. Mobile now makes up a huge 76% of advertising revenue, up from 73 % last quarter. Mobile monthly users grew 4.8% to 1.31 billion from 1.25 billion, and mobile daily users grew 5.76 % to 844 million from 798 million, both a little slower than last quarter. Daily active users hit 968 million, up 3.41% from 936 million.

Zuckerberg in the conference, emphatically highlighted the role of videos on strengthening Facebook’s presence and declared the space of virtual reality as the next big thing. 

“There’s this continued progression of people getting richer and richer ways to share what’s on their mind. So if you go back ten years, most of how people communicated was through text. We’re going through a period where now it’s mostly visual and photos. We’re entering into a period where that’s increasingly going to be video—and we’re seeing huge growth there. But that’s not the end of the line,” said Zuckerberg.

As per Wired, he also added, “There’s always a richer way that people want to share and consume thoughts and ideas,” he added. “And I think immersive 3D content is the obvious next thing after video.”

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Commenting on the same, Sanderberg said “Our video demand is very deep…people love videos.” It is amazing to see the proliferation of technology at this rate. This is the hour of video sharing, but soon this trend would be replaced by VR sharing.