If you’re still unsure whether or not Facebook is a mobile company, a quick look at its Q2 earnings report should answer the question.
The social network lived up to Wall Street expectations Wednesday, reporting growth across mobile ad revenue and mobile users. Mobile ad revenue now accounts for 76 percent of all Facebook’s ad revenue, up from 73 percent last quarter. More than 1.31 billion people visit Facebook each month from a mobile device, 23 percent more than the same time last year. The social network now has 1.49 billion total users.
“If you look trajectory-wise, this is our most positive quarter for user growth in two years,” COO Sheryl Sandberg told Re/code immediately after the earnings were released. She was quick to point out that 65 percent of Facebook users visit the site every single day. “What’s really exciting is not just top-line user growth, but how engaged people are.”
Facebook reported a profit of 50 cents per share on $4.04 billion in revenue last quarter. Those numbers beat analyst estimates. Wall Street was looking for a profit of 47 cents per share on just under $4 billion in revenue in Q2, just over 37 percent growth over the same time last year.
But it’s also clear that some of Facebook’s user growth has started to slow down. The number of daily active users, for example, reached 968 million, a 17 percent gain over the previous year, but less than the 19 percent it grew in the same period the year earlier. Mobile DAUs also slowed, gaining 29 percent from last year, down from the 39 percent rise in those users last year.
Facebook also reported higher-than-usual expenses: Almost $2.8 billion last quarter, up 82 percent from the previous year. The reason? “Stock based compensation due to the WhatsApp acquisition,” according to CFO David Wehner. Facebook bought WhatsApp in February of 2014 for a cool $19 billion, and is clearly still paying that deal off.
Facebook stock is down a little more than 2 percent in after-hours trading. The company is scheduled to host a call to discuss the earnings at 2 pm PT.
This article originally appeared on Recode.net.