Despite spending big on new technologies like artificial intelligence and virtual reality, Facebook has posted better than expected revenue of $US4.5 billion for the third quarter.
The social networking giant’s expenses skyrocketed, increasing 68% year-on-year to $US3.04 billion, but a huge drive in video advertisements provided the capital needed for Facebook to bank on new, revolutionary technologies.
Get business news first
Sign up to SmartCompany’s daily newsletter
Spending on video ads has tripled this year compared to 2014 and total ad revenue reached $US4.29 billion, up 45%.
Facebook has emphasised its video content a lot this year, and it seems it has been successful in convincing marketers to get on board.
There are more than 8 billion video views on Facebook each day, double the amount back in April.
This has allowed the company to devote huge amounts of money and resources to innovative programs, like a virtual assistant on its messenger service, and the lofty aim of providing the internet to the world.
The site now boasts more than 1 billion daily active users, and 894 million of these are on mobile. According to the company, Facebook and Instagram now account for more than one in five minutes people spend on the internet in the US.
It also has 50 million users of Facebook Light, a version of the platform for people without a good internet connection.
In a statement, Facebook CEO Mark Zuckerberg emphasised his longer-term plans.
“We’re focusing on innovating and investing for the long-term to serve our community and connect the entire world,” Zuckerberg says.