Facebook crushed its third-quarter earnings on Wednesday, sending its shares soaring in after-hours trading.
The social network grew its daily active users to 1.37 billion, a 50 million user increase from the previous quarter. Revenue for the quarter topped $10 billion.
But Facebook also warned that its meteoric profit will start to slow. In a statement to investors, CEO Mark Zuckerberg said the company is “investing so much in security” that it will impact future profitability. “Protecting our community is more important than maximizing our profits,” he said.
Investors are looking for Facebook’s ability to grow its ad revenue from sources besides the News Feed, which is nearing the limit of ads it can show. Instagram ads and Facebook’s efforts to monetize videos are considered to be the company’s strongest growth bets in the near term.
Here are the key numbers from Facebook’s Q3 results:
- Revenue: $10.33 billion vs. $9.84 billion expected, up 47% from the year-ago period.
- EPS (GAAP): $1.59 vs. $1.28 expected, up 77% from the year-ago period.
- Monthly active users: 2.07 billion, up from 2.01 billion last quarter.
- Daily active users: 1.37 billion, up from 1.32 billion last quarter.
Despite mounting criticism from US lawmakers over Russia’s use of its platform to spread propaganda, the company’s stock has been trading at all-time highs ahead of Wednesday’s results. Shares of Facebook have risen more than 5% in the last week alone on the back of strong earnings from Google, Amazon, and Microsoft.
This story is developing. Check back for updates.