Facebook reported that its income has more than tripled in the last quarter, outperforming analysts’ expectations.
The site’s net income increased from $896m (£728m) in 2015 to $2.4bn in the last quarter. Mobile advertising revenue accounted for 84pc of Facebook’s total advertising revenue of $6.82bn in the third quarter ended 30 September, compared with 78pc a year earlier.
The social network reported more than $7bn in revenue in the last quarter, boosted by sales of its mobile advertising. That figure was up 56pc on the same period last year and higher than the $6.92bn predicted by analysts.
The number of people using Facebook also continues to rise, with monthly active users of the site climbing 16pc on last year to 1.79bn, with 1.18bn visiting the social network daily.
But shares in the site fell as much as 7.8pc after investors spooked at comments made by chief financial officer David Wehner on a conference call. He said revenue growth rates will come down meaningfully next year, because the company won’t keep increasing the percentage of advertss that Facebook users see in their news feed.
He added that capital expenditures will rise substantially in 2017 as the social network works to recruit the best engineers and build data centers.