Facebook reported a much-higher quarterly profit, driven by surging sales of mobile video ads, as its advertising revenue grew at more than twice the rate of larger rival Google.
The company also said on a conference call to discuss the results that 2017 expenses would rise less than previously forecast -- it's now saying that expenses will go up 40 to 45 percent, instead of 40 to 50 percent.
The stock jumped as much as 4 percent to a record high after Facebook announced that news.
Here are the key second-quarter metrics:
- EPS: $1.32 vs. $1.13 expected, according to Thomson Reuters
- Revenue: $9.32 billion vs. $9.2 billion expected, according to Thomson Reuters
- Mobile ad revenue: $8 billion vs. $7.68 billion expected, according to StreetAccount
- Monthly users (MAUs): 2.01 billion vs. 1.98 billion expected, according to StreetAccount
- Capital expenditures: $1.44 billion vs. $1.73 billion expected, according to StreetAccount
Facebook has been adding more video and display ads to the mobile version of its app as more consumers access the internet via their smartphones. The company is expected to add short TV-like programming soon.
"We are making some early investments to create episodic content," Facebook Chief Operating Officer Sheryl Sandberg told CNBC in an interview.
The company has also overhauled its Instagram service over the past year to beat back a challenge from smaller rival Snap.
More than 15 million businesses now have a presence on Instagram, in addition to the 70 million who have Pages on Facebook, Sandberg said.
"Our goal is to be a platform for content creators," she said.