Facebook profits skyrocket despite scandals

midian182

Posts: 6,436   +56
Staff member

Facebook is going through its worst period since the site existed, with one controversy after another leading to the #deletefacebook campaign. It's easy to imagine that all the bad press would be reflected in the company’s bottom line, but no: the social network is as successful as ever.

The Cambridge Analytica scandal, Mark Zuckerberg’s appearance before Congress, revelations about the ‘growth at any cost’ mentality, and accusations that it played a part in spreading hate speech in Myanmar have all seen Facebook’s image take a hammering recently. But the firm’s Q1 2018 financial report shows that its earnings haven't been affected, yet. Revenue was up 49 percent year-over-year to $11.97 billion, beating analysts estimates of $11.41 billion. Ad revenue made up most of that money—$11.8 billion—91 percent of which was from mobile.

Facebook’s net income was just as impressive during the last quarter, reaching $4.98 billion, which is 63 percent higher compared to one year ago. Earnings per share were $1.69, above Wall Street’s expectations of $1.35.

While some famous names and companies have abandoned Facebook recently, the site’s number of monthly active users keeps on growing. It now stands at 2.2 billion, up 13 percent from a year earlier. Daily users are also up, to 1.45 billion.

Additionally, Facebook now hires more staff than ever before. Its 27,742 employees represent a 48 percent increase compared to the year before. The all-important Average Revenue Per User, meanwhile, reached $5.53, up YoY but down from the last quarter.

It's worth noting that the Cambridge Analytica story did break close to the end of the first quarter—March 16—so there’s a chance that its effect could be more noticable in the Q2 2018 report.

"We have a responsibility to keep our community safe and secure, and we're going to invest heavily to do that," Zuckerberg said on a conference call with analysts. "At the same time, we also have a responsibility to keep moving forward."

Facebook’s stock was up 7 percent on the back of the report.

Permalink to story.

 

Uncle Al

Posts: 7,976   +6,744
It's not an indication of the recent congressional hearings .... lets wait and see where the numbers are NEXT quarter and if the major stock holders call for Zuk to step down (as so many already have).
 
  • Like
Reactions: wiyosaya
D

davislane1

The lesson people should have learned long ago:

Money talks. All else walks.

The data FB et. al. harvest allows anybody willing to pay for it to laser target potential customers, which translates to big sales numbers. Any savvy business owner or executive is using this data. Which means...

1. Nobody with good business sense is going to stop using it. Even people who symbolically delete their corporate pages *after* having all the page members on a mailing list and already having detailed analytics on them.

2. Nobody in Congress is going to do anything because (1) they clearly have no clue how this technology works, (2) because their major donors use the data to target their products and services.
 

wiyosaya

Posts: 5,629   +3,813
It's not an indication of the recent congressional hearings .... lets wait and see where the numbers are NEXT quarter and if the major stock holders call for Zuk to step down (as so many already have).
I agree. People seem to think that congress works instantly. One day, Duck is testifying, the next day, congress is making laws because they did not like Duck's testimoany. Well, it just doesn't work that way.

On virtually everything these days, congress is slower than ice-cold molasses. If anything comes out if the hearings, it will be a while. But my guess is Duck will grease a few palms and line a few pockets or hire a lobbying team and congress will do Jack Schitt about the policies - unless there is a significant change of political climate that results in congress waking up to fakebook's parasitism.