Facebook beats expectations once again, warns that future security measure will affect...

midian182

TechSpot Editor
Staff member

With all the controversy surrounding Facebook and the Russian ads, one might imagine that the company’s bottom line is being affected. But that couldn’t be further from the truth. The social network has once again beaten expectations, with shares reaching an all-time high.

Facebook reported earnings of $1.59 per share on $10.3 billion in revenue for Q3 2017. Analysts had been looking for $1.28 per share on $9.48 billion in revenue. The figures mark a YoY profit increase of 79 percent, while total revenue is up 47 percent.

Facebook stock, which has risen almost 59 percent since the start of 2017, reached $182 per share on the back of the news. The company also revealed the number of active monthly users has increased to 2.07 billion, up 16 percent since last year, and it now boasts 1.37 billion daily users.

As usual, advertising was Facebook’s primary earner, bringing in $10.142 billion in revenue, up 49 percent from last year. Mobile ads account for most of the advertising revenue—88 percent—a four percent YoY jump. “Video is exploding, and mobile video advertising is a big opportunity,” said Chief Operating Officer Sheryl Sandberg.

In a letter to investors, Mark Zuckerberg warned that future profits could be affected as it spends more money tightening security on the platform. “Our community continues to grow and our business is doing well," the CEO wrote. "But none of that matters if our services are used in ways that don't bring people closer together. We're serious about preventing abuse on our platforms. We're investing so much in security that it will impact our profitability. Protecting our community is more important than maximizing our profits."

Zuckerberg said the extra spending would include adding 10,000 people to its review process, monitoring for content such as child pornography, terrorism, and state-sponsored interference on the platform. The company already has 23,165 employees, up 47 percent from one year ago, but it’s likely most of the new additions will be contractors.

Facebook expects its total expenses for next year to increase by as much as 60%.

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Skidmarksdeluxe

TS Evangelist
"Protecting our community is more important than maximizing our profits."
That sounds like nothing more than lip service that was intended to be made public but probably in a letter addressed to investors only, the opposite is most likely true. Maximising profits for ANY company is the single most important thing, everything else is just secondary.
 
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Reactions: Footlong

Capaill

TS Evangelist
Whether his intentions are just or he has an ulterior motive, it's still a strong statement to make to the rest of the tech world. Also, when his profits have just gone up by 79%, I guess he can afford a little deviation into non-profit territory.
 

Footlong

TS Addict
Whether his intentions are just or he has an ulterior motive, it's still a strong statement to make to the rest of the tech world. Also, when his profits have just gone up by 79%, I guess he can afford a little deviation into non-profit territory.
I doubt it. No company the size of Facebook has ever done something without profit insight. He might be protecting the brand, but not going to deviate into non-profit territory.
 

Theinsanegamer

TS Evangelist
As if anybody would ever believe the hypocrite zuckerberg, the guy that says there is no spying int he facebook platform yet leaves his mic/webcam taped over.