Sunday, 19 November, 2017

Facebook profits leap on booming ad revenue

Facebook expected to show 40 percent sales growth as stock reaches record high Facebook's targeted ads seen driving quarterly revenue 40 percent higher though profit is rising more slowly as it spends moreMore
Juana Turner | 04 November, 2017, 00:22

We're serious about preventing abuse on our platforms. Facebook's average quarterly revenue per daily active user is now $7.54 - the highest in its history. We're bringing the same intensity to these security issues that we've brought to any adversary or challenge that we've faced.

Zuckerberg said that the community continues to grow, now with almost 2.1 billion people using Facebook every month, and almost 1.4 billion people using it daily.

"Protecting our community is more important than maximizing our profits", Zuckerberg said. Daily active users amount to 1.37bn, up 16pc on previous year.

"None of that matters if our services are used in ways that don't bring people closer together - or if the foundation of our society is undermined by foreign interference", Zuckerberg said to investors.

Mobile advertising revenue represented approximately 88 per cent of advertising revenue for the third quarter of 2017, up from approximately 84 per cent of advertising revenue in the third quarter of 2016.

That is due to a 16 per cent growth in its daily active users over the year and 3.8 per cent increase quarter-over-quarter touching 1.37 billion mark.

On Tuesday, Facebook's general counsel Colin Stretch testified to Congress that 126 million U.S. users may have seen fake news or political advertisements bought by Russian Federation in 2016. In an earnings call, Zuckerberg emphasised that video will remain the top priority for the company's revenue growth over the next three years.

At the same time, the company expects higher security costs together with investment in original video content to increase operating expenses by up to 60 percent in 2018, according to CFO David Wehner.

During this week's hearings at Capitol Hill, Facebook's counsel Colin Stretch said that the social network intends to hire 10,000 more workers to increase safety and review content, effectively doubling the number of reviewers to 20,000.

Like any good engineers, Zuckerberg and his team will work their way out of the fog to calmer waters by doubling down on accuracy.

While the 10% figure is relatively small compared to Facebook's massive network of users around the world, it still equates to roughly 207m duplicate accounts - quite apart from its additional 60m "fake" accounts.

"This quarter, we implemented a new methodology to help identify duplicate accounts", noted Wehner in an earnings call.

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