Facebook posts $4.2bn profit as Mark Zuckerberg laments 'hard year'

Facebook posts $4.2bn profit as Mark Zuckerberg laments 'hard year'

Mark Elliot Zuckerberg apparently is one of those people annoyed by it.

Facebook, which has more than 2 billion users worldwide, said it's prioritizing trustworthy, informative and local news.

And well, today during its Q4 2017 earnings report, Facebook revealed that even though users are indeed spending less time on its site, it is making more money than ever.

Wall Street was expecting Facebook to report revenue of $12.5 billion and profit of $1.94 per share. That amounted to the slowest user growth on record.

More news: Will we see the super blue blood moon over Norfolk?

Perhaps the most striking figure for investors was the decline in daily active users in the U.S, the company's most valuable market.

Chief Executive Mark Zuckerberg said in a statement that the reduction in time spent during the quarter reflected changes to show fewer viral videos "to make sure people's time is well spent".

This move will also help reduce the spread of misinformation on pages that are created to mimic local news stories. Zuckerberg disclosed on Wednesday that changes made last quarter reduced time spent on the platform by "roughly 50 million hours every day". "That's going to probably serve as an overhang on the stock". If those results sound borderline impossible, particularly for a company Facebook's size, its third-quarter results support the idea that they are within a reasonable range. Neil Campling, co-head of the global thematic group at Mirabaud Securities Ltd., wrote in a note following the results.

Facebook's average revenue per daily user is $9.27, up 23 percent from last quarter.

More news: Google removed 700000 bad apps from the Play Store past year

The company also reported almost $13 billion in fourth quarter revenue Wednesday, up 47 percent from the same time past year, and an all-time high for the company. Diluted earnings per share came in at $1.44, compared to $1.21 the year before. Without the adjustment, Facebook would have earned $2.21, topping consensus of $1.94.

Facebook has become more self-critical since revealing a campaign by Russian Federation to spread political discord around the 2016 presidential election that reached an estimated 150 million U.S. users on Facebook and Instagram.

Facebook has been under pressure, as USA lawmakers investigate the alleged use of the social media network for propaganda efforts.

While posts from family and friends will still be ranked higher on the social network, news will make up about 4 percent of News Feed, Zuckerberg said this month. Once you've made these changes to the setting, your Facebook news feed will be just the way you want.

More news: Facebook Unveils Privacy Principles Ahead Of EU Privacy Law

Zuckerberg called 2017 "a strong year for Facebook" but acknowledged that "it was also a hard one".

Related Articles