The following is an excerpt from Alex Fitzpatrick | January 27, 2016 | Time.com |
The social network's latest earnings report defied expectations
Facebook is on fire.
The Menlo Park, Calif. firm posted stellar results for the fourth quarter of 2015 on Wednesday, with adjusted earnings per share of $0.79 on revenue of $5.84 billion. Both figures trounced analysts’ expectations.
Facebook’s success comes in large part because it’s figured out how to make money from the smartphones we’re all carrying around every day.
Here are three key takeaways from Facebook’s earnings report:
1. The amount of money Facebook makes from advertising is up 57% year-over year. It now totals $5.6 billion.
Facebook makes nearly all of its revenue by selling space in its News Feed to advertisers. Clearly big-spending brands think there’s value in having their products and services displayed alongside baby photos and engagement announcements.
For more visit: Times.com