Technology

Facebook becomes a cash machine

Facebook-becomes-a-cash-machine

The social network publishes financial results in sharp growth. Facebook sees its turnover literally jump by 52% compared to last year.

The business model of Facebook made recipe. The US social network displays its financial health. As part of the publication of its results for the account of the first quarter, the service shows to be on the increase in relation to last year. The pillars of the platform are 3 in number: advertising, video and mobile.

Facebook progresses effect on three legs relate it big. In the first quarter 2016, the group said its revenues grew by 52% to 5.38 billion dollars. Net income is also experiencing an upturn, to 1.5 billion. These items are to be credited to advertising, this segment increased by over 56% over the period.

Mark Zuckerberg: the gifted one billion friends

Advertising revenues of the group are sharply increase, to 5.20 billion. This growth is explained by the focus on video and advertisements that accompany them. To date, over 80% of advertising revenues are generated on the mobile. As for the number of users, it also still growing. Now, Facebook claims to have 1.65 billion monthly users (1.09 billion daily) against 1.59 last year.

mark-zuckerberg-f8

These results exceed analysts’ expectations and show that the model of Facebook works. After a period of hyper growth of its subscribers, the platform monetizes its audience and draw fruits. What now see further.

Oculus, a growth driver

During the presentation of the results, Mark Zuckerberg took the opportunity to discuss the future of Oculus, now property of the social network. In this regard, the leader has insisted that virtual reality could not be considered at present, as an element to generate growth.

photo-oculus-rift

The boss of Facebook says: “We’re still at the beginning of this technology and its development will take time.” Mark Zuckerberg does not expect is that the technology refers to the platform, at least in the coming years.

About the author

Paul Morris

Paul Morris is an entrepreneur, consultant and author. He is an advisor at Xpert Automation, a tech-based business incubator focused on scalable startups, and founder of ContentFy.

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