Facebook Earns $3.56 Billion In 4th Quarter, Beating Estimates

Shares of Facebook Inc (NASDAQ:FB) stock jumped by about 3% in after-hours trading tonight, touching a new record high above $136 per share.

From all those billions, Facebook pulled in $8.8 billion in revenue over the quarter, but the numbers get quite staggering when you look at the year overall. That's up 51 percent from revenue of $5.84 billion a year ago.

Mobile ad revenue accounted for 84 percent of the company's total advertising revenue of $8.63 billion in the fourth quarter that ended December 31, compared with 80 percent a year earlier.

Facebook reported daily active users of 1.23 billion, up 18%, and mobile daily active users of 1.15 billion on average, up 23%. This quarter was no different, with a reported $8.8 billion in revenue and $3.56 billion in profit.

As mobile eats the world, Facebook is making a meal out of mobile advertising. Mobile ad revenue represented about 84% of total ad sales in the latest quarter, flat from the prior quarter and up from 80% in the same period a year earlier.

"Our business did well in 2016, but we have a lot of work ahead to help bring people together", Mark Zuckerberg, Facebook's CEO and cofounder, said in a statement.

Wall Street was looking for Q4 earnings of $1.31 per share with $8.51 billion in revenue.

Facebook has faced doubts about whether it can continue its runaway success in the face of such limits, as well as its absence from the Chinese market and criticism about its handling of so-called "fake news" posts during last year's US election.

The Apple of investors eyes, Facebook has had another strong quarter.

Monthly Active Users (MAUs) totaled 1.86 billion as of December 31, 2016, up 17% year over year.

Facebook hasn't hit 2 billion users per month, but it's getting pretty damn close.

Facebook, which also owns Instagram, has been trying to fuel the growth of more video on the social media site this year, encouraging celebrities, media outlets and other users to post more live video on its site.

In the fourth quarter, Facebook also revealed miscalculated some of its advertising metrics, but analysts didn't expect those discrepancies to hamper its earnings despite concerns from some marketers. "They grew 57 percent in 2016, and our current model has "only" 38 percent revenue growth in 2017".