Facebook Soars on Earnings Report

 

Facebook shares were up more than $8 following its first quarter earnings report and reached an all-time high.

“We had a great start to the year,” said Mark Zuckerberg, Facebook founder and CEO. “We’re focused on our 10 year roadmap to give everyone in the world the power to share anything they want with anyone.”

Facebook revenues for the first quarter were $5.3 billion, up 52% from last year. Net income was $1.51 billion according to GAAP.

The leading social networking site announced daily active users of 1.09 billion worldwide, up 16% from last year. Daily mobile users averaged 989 million in March, up 24% from last year.

Monthly active users were 1.65 billion as of March 31, 2016, an increase of 15% year-over-year.

Facebook’s board of directors has also approved a proposal to create a new class of non-voting capital stock, known as the Class C capital stock. If the proposal is approved, the company intends to issue two shares of Class C capital stock as a one-time stock dividend in respect of each outstanding share of Class A and Class B common stock. This proposal is designed to create a capital structure that will allow founder Mark Zuckerberg’s to remain in an active leadership role at Facebook while he donates a significant portion of his wealth to charity. The adoption of the proposal is subject to the approval of stockholders at the company’s 2016 Annual Meeting of Stockholders to be held on June 20, 2016.