Facebook Q3 earnings increased 11%, revenue up 41%
In the third quarter, Facebook made it easier for companies to buy ads on the Instagram photo-sharing app and reach its 400 million users.
Revenue rose 41% to $4.5 billion in the third quarter, helping to offset the 68% surge in Facebook's total costs and expenses. The company continues to spend heavily on projects as varied as artificial intelligence, virtual reality and bringing Internet access to emerging markets.
Facebook's net income increased to $896 million, or 32 cents per share, from $806 million, or 30 cents per share, a year ago. Analysts expected Facebook to report third-quarter net income of $776.5 million, or 27 cents per share, according to data compiled by S&P Capital IQ.
Excluding some expenses, Facebook reported earnings of 57 cents per share, above the 52 cents per share projected by Wall Street analysts.
Facebook's operating margin slipped to 54% from 57%. ■