Social media giant Facebook received a bit of a poke last night when it reported a nine per cent fall in quarterly profit after spending heavily to boost mobile revenue and develop products.
Shares dipped in after hours trading, despite the company saying that it has 1.49bn monthly active users – up 13 per cent from a year ago. Sales also beat Wall Street expectations, jumping from $2.91bn to $4.04bn.
However, investment in messaging service WhatsApp, photo-sharing app Instagram and virtual reality headset maker Oculus Rift took its toll on the firm. Facebook’s total costs and expenses jumped 82 per cent to $2.77bn in the three months ended 30 June.
The company had warned that 2015 would be a year of heavy investment, but analysts have said these investments are likely to translate into significant revenue streams in coming years.
Mobile ads accounted for 76 per cent of Facebook’s advertising revenue of $3.83bn in the second quarter, compared with 62 per cent in the same quarter last year.