The growth is almost entirely from advertising, with mobile accounting for 82 percent of the ad revenue. Mobile ad revenues increased by 76 percent during the period, while desptop ad revenue rose 4.5 percent. North America was still Facebook's strongest market, with revenue up 64 percent, followed by Asia at 62 percent growth and Europe at 49 percent. North America accounted for 50 percent of ad revenue.
After capital expenditure of USD 1.1 billion, Facebook generated free cash flow of USD 1.8 billion. It finished the period with total cash and investments of USD 20.6 billion.
The number of active monthly users on the social network rose to 1.65 billion from 1.44 billion a year ago, with mobile users reaching 1.51 billion. Average revenue per user was the highest in North America at USD 12.43 per month, followed by Europe at USD 3.98 and Asia at USD 1.56. Daily active users were also over a billion, at 1.09 billion versus 936 million a year ago.
Facebook also announced plans to issue a new class of 'C' shares. These will be issued to A and B shareholders at a ratio of two for one. C shares will have the same economic rights but no voting rights. Shareholders need to approve the plan at the meeting planned for 20 June. The aim of the new shares is to ensure CEO Mark Zuckerberg retains control of the company, in order to execute his long-term plans. In an accompanying letter, he outlined these to include connectivity, artificial intelligence, virtual reality and augmented reality. The shares will also contribute to his plan to give 99 percent of the value of his shares to charity.
