For the fourth quarter of 2015, Facebook reported both revenue and EPS increases in the high double digits. Net sales were $5.84 billion, an increase of 51.7% versus the prior year. For full-year 2015, Facebook reported revenues of $17.93 billion—an increase of 44% year over year and ahead of the consensus estimate of $17.45 billion. Despite the quarter’s strong revenue figures, management noted that the US dollar’s strength had had an “unfavorable impact” on the company’s financials. If the exchange rates had been the same as they were in the fourth quarter a year ago, total revenue would have been roughly $310 million higher. The company reported adjusted EPS of $0.79 for the quarter, which represented an increase of 46% versus the year-ago quarter and beat the $0.54 consensus estimate by 25 cents. The company reported full-year adjusted EPS of $2.28, up from $1.77 in 2014 and ahead of analysts’ estimates of $2.17.

ADVERTISING REVENUE

Facebook’s advertising revenue was particularly strong, up a whopping 57% year over year, to $5.64 billion, beating the consensus estimate by 9%. Mobile advertising revenue continued its strong growth, totaling $4.51 billion versus expectations of $4.09 billion. According to management, mobile ads accounted for 80% of total ad revenue in the quarter, compared to 69% in the year-ago period. The company has the world’s most popular smartphone app, and it has benefited from a surge in video views that has attracted advertising dollars. There are more than 2.5 million active advertisers working with Facebook, CEO Mark Zuckerberg said on the company’s earnings call.

ACTIVE USERS

Facebook topped estimates for MAUs, reporting 1.59 billion users as of December 31 (up 14% year over year), ahead of consensus estimates of 1.58 billion. The company recorded 1.04 billion on average daily active users (DAUs) for December 2015, up 17% year over year. The company saw 1.44 billion mobile MAUs as of December 31, which beat consensus estimates of 1.43 billion, and represented a year-over-year increase of 21%. There were on average 934 million Mobile DAUs, an increase of 25% year over year. For the first time, more than 90% of both MAUs and DAUs were on mobile, according to the company. OTHER BUSINESS UNITS Apart from focusing on mobile, Facebook is increasing its spending on several “big bets,” including virtual reality, artificial intelligence and drones. The company has also begun monetizing some of its other business units, such as the popular photo-sharing app Instagram, which surpassed 400 million users last year and began selling ads in September. In January, Facebook began taking orders for a consumer version of the Oculus Rift virtual reality headset.

GUIDANCE

Facebook expects the strong US dollar to continue to affect comparisons and act as a headwind, especially early in the year. Management expects to face “tougher” comparisons throughout 2016, given the strong advertising performance. The company is exploring ways to give people a dedicated place on Facebook where they can watch videos when they want to, potentially hinting that it will compete with Alphabet’s YouTube eventually. Management also announced that it is working to improve the Facebook Lite app for low-bandwidth environments and that the app now has more than 80 million users. Investors will be watching the growth of Facebook-owned WhatsApp. Earlier this month, WhatsApp said it would no longer charge annual subscription fees and that it would begin testing ways for users to communicate directly with businesses. WhatsApp ended the year with nearly 1 billion active users.