Facebook reported its first-quarter-2016 financial results Wednesday and announced a proposal to create a new class of stock in the company.
Following are highlights from the social network?s financial results, details about the stock class proposal and highlights from the company?s earnings call, which was held Wednesday after market close.
Facebook?s revenue reached $5.382 billion in the first quarter of 2016, up 52 percent from $3.543 billion in the year-ago period. Ad revenue climbed 57 percent year-over-year, to $5.201 billion, and mobile ad revenue?which accounted for 82 percent of total ad revenue?was up 75 percent compared with the first quarter of 2015, to $4.2 billion.
Facebook?s generally accepted accounting principles net income nearly tripled year-over-year, reaching $1.51 billion ($0.52 per share), up from $512 million ($0.18) in the previous-year quarter.
The social network reported 1.65 billion monthly active users as of March 31, up 15 percent year-over-year; 1.51 billion mobile MAUs, up 21 percent; 1.09 billion daily active users, up 16 percent; and 989 million mobile DAUs, up 24 percent.
Class-C capital stock
Facebook announced that its board of directors approved a proposal to create a new class of non-voting capital stock, class-C capital stock. The company said that if its proposal is approved, it will issue two class-C shares as a one-time dividend for each outstanding class-A and class-B share of common stock.
The proposal will be voted on at Facebook?s 2016 annual meeting, scheduled for June 20.
Facebook co-founder and CEO Mark Zuckerberg said in note shared via Newsroom:
Everything we do at Facebook is focused on our mission to make the world more open and connected.
To maintain our focus on this mission, we have always been a founder-led company. This structure has helped us resist the short-term pressures that often hurt companies. It has helped us grow our community, build our business and create shareholder ...