Facebook will hit 2B users this year following impressive fourth quarter

The social network had 1.86 billion monthly active users as of the end of 2016, up from 1.79 billion the previous quarter and 1.59 billion a year earlier, according to its fourth quarter earnings report on Wednesday.

At the end of 2016, Facebook reported a record 1.86 billion users active each month on the social network, a 17% increase on past year.

Analysts polled by Thomson Reuters expected the Facebook to earn $ 1.31 per share on revenue of $ 8.51 billion for the fourth quarter.

Facebook CEO and co founder said that the business did well in 2016 but the company has set higher objectives and will work to achieve them and bring people together.

Closing in on 2 billion users, monthly active users were 1.86 billion as of December 31, 2016, an increase of 17 per cent year-over-year. Mobile DAUs were 1.15 billion on average, up 23% year-over-year.

The strong results allay some concerns after the company warned in November that ad growth would likely slow "meaningfully" due to limits on "ad load" - the total number of ads Facebook can show to each user.

Mobile advertising represented approximately 84% of ad revenue during the quarter, up from 80% a year ago. $4.55 billion of total revenues came from the US and Canada, $2.06 billion from Europe, $1.34 billion from Asia Pacific, and $839 million from the rest of the world.

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On a per-share basis, the Menlo Park, California-based company said it had net income of $1.21, up from 54 cents per share.

It means $1.41 profit per share instead of the $1.31 that Wall Street was expecting.

Meanwhile, the company's monthly active usersbase moved up to 1.86 billion.

Facebook Inc shares rose $3.02 (+2.27%) to $136.25 in after-hours trading Wednesday following the report.

Zuckerberg said Facebook's focus after mobile will be video - and he left no doubt the company would spend aggressively to compete for eyeballs with the likes off Snapchat and YouTube. That's about $18.25 ad revenue generated per user. Facebook is a popular online social networking service.

Much like Google or Amazon, Facebook (FB) has never been shy about saying it doesn't try to "manage" its spending to hit quarterly or annual earnings targets.

  • Desiree Holland