Facebook beats in Q3 with $4.7B profit and 2.07B users despite Russia’s shadow
Facebook is still in the middle of its House Intelligence Committee hearing about Russian election interference, but the looming concerns over misuse haven’t dampened its business as profits continue to soar. Facebook’s announced Q3 2017 earnings today, continuing its streak of beating estimates. Facebook earned $10.3 billion in revenue and $1.59 GAAP actual earnings per share, compared to estimates of $9.84 billion in revenue and $1.28 EPS. Facebook’s EPS is up 76% year-over-year, showing how efficient of a money-maker it’s become.
Revenue growth was 47% year-over-year compared to 59% in Q3 2016, which matches Facebook’s warnings that it’s running out of space to show ads. Mobile as a percentage of Facebook’s ad revenue inched up from 87% to 88% this quarter as it reaches a stabilization point in its successful shift to mobile.
As for users, Facebook now has 2.06 billion monthly active users, up 3.19% compared to last quarter’s 2.006 billion and 3.4% growth rate. Daily active users reached 1.37 billion, up 3.8% quarter-over-quarter.
Facebook’s share price had closed at $182.66 prior to the earnings announcement, and climbed 1.76% in after-hours trading.
It’s been a grim few months for Facebook, which has struggled to improve its abuse detection systems following Russian election interference. Meanwhile, it’s scared news publishers with tests of a News Feed that removes all Pages and places them in a separate, buried feed. But prioritizing the user experience has allowed Facebook to continue to thrive amidst its many challenges and widespread public backlash.
Published at Wed, 01 Nov 2017 20:12:26 +0000
