Facebook revealed their earnings report for the first quarter of 2016, and the results are huge.
It reported a total of $1.5 billion in earnings for the period between January and March, which is a huge increase from last year’s $512 million in earnings.
That results in a 195 percent increase in profit.
In order to achieve this, Facebook launched a number of new services for advertisers, including live video, as well as launching new ways for advertisers to advertise on existing services.
Mobile also resulted in huge gains for Facebook, with mobile advertising making up 82 percent of Facebook’s overall advertising revenue, up from 73 percent at the year-ago quarter.
Total daily active users were also increased by 16% from a year earlier, with mobile users increasing by 24%.
Total sales for the quarter were at $5.3 billion, which is up from last year’s 3.5 billion.
Facebook also announced that they will be creating a third class of shares that will “create a capital structure that will, among other things, allow us to remain focused on Mr. Zuckerberg’s long-term vision for our company and encourage Mr. Zuckerberg to remain in an active leadership role at Facebook.”
Mark Zuckerberg explained it with the following statement:
When I look out at the future, I see more bold moves ahead of us than behind us. We’re focused not on what Facebook is today, but on what it can be, and what it needs to be for our community. That means investing in areas like spreading connectivity, building artificial intelligence and developing virtual and augmented reality.
…there are more global challenges that I feel a responsibility to help solve — like helping to cure all diseases by the end of this century, upgrading our education system so it’s personalized for each student, and protecting our environment from climate change. That’s why Priscilla and I created the Chan Zuckerberg Initiative and committed to give 99 percent of our Facebook shares during our lives to advance human potential and promote equality.
Today, Facebook’s board of directors is announcing a proposal to create a new class of stock that will allow us to achieve both goals. I’ll be able to keep founder control of Facebook so we can continue to build for the long term, and Priscilla and I will be able to give our money to fund important work sooner. Right now, there are amazing scientists, educators and doctors around the world doing incredible work. We want to help them make a bigger difference today, not 30 or 40 years down the road.
As a result of this news, Facebook shares rose by 5.8 percent in after-hours trading.