Facebook, Inc. Q1 Earnings, Revenue Top Analysts' Expectations

Facebook, Inc. Q1 Earnings, Revenue Top Analysts' Expectations

Profit in the first quarter of 2018 leapt 63% from a year ago to $5 billion, and total revenues increased 49% to $11.97 billion, Facebook said in an earnings update which topped most analyst forecasts.

Mobile advertising contributed to the company's massive growth, accounting for 91% of its overall ad revenue, up from 85% in the first quarter of 2017. But in the aggregate they have shrugged off the scandals, as have users.

Daily active users and monthly active users rose to 1.45 billion and 2.2 billion respectively.

Facebook's staff headcount was 27,742 as of 31 March - a year-on-year increase of 48 per cent.

"So long as profits continue to grow at a rapid rate, investors will accept that higher spending to ensure privacy is warranted", Wedbush Securities analyst Michael Pachter said.

More news: Cops Try Unlocking Phone With Dead Man's Finger

Political-consulting firm Cambridge Analytica obtained information on as many as 87 million users in 2014 and then lied about deleting the data, Facebook has said.

Facebook shares jumped more than 5% in after hours trading after ending the regular session flat at $US159 ahead of the post close release of the results.

Yet despite the challenges, Facebook's extensive role in advertising strategies was made apparent in the quarterly results. It seems the company is trying to hide more than reveal.

The government had to make this pointedly clear because the American social networking platform has already admitted that almost 5.62 Lakh Indians were "potentially affected" by the data breach incident, however, Cambridge Analytica continues to be in denial to reveal any such data and it still claims that it does not have any Facebook data on Indian citizens.

A senior IT ministry official aware of the development said that the government wants to send out a "strong signal" to worldwide bodies operating in IT and data platform that any manipulation of data of Indians, in violation of law and privacy norms, will be viewed "seriously".

More news: Rahul Gandhi assails PM; Shah calls him 'failed leader'

But Williamson said some of Facebook's momentum was already fading due to other factors such as disinformation, social media fatigue and new platforms attracting young people. Sheryl Sandberg, Facebook's COO, said some advertisers had taken a "pause" with Facebook amid the scandal.

Facebook's Mark Zuckerberg faces Wall Street for the first time since the Cambridge Analytica scandal.

First quarter profits also grew, reaching $4.9bn compared to $3bn past year. But don't expect any sweeping changes to the company's ad business yet.

On a conference call, chief financial officer David Wehner said the average monthly and daily user growth in Europe could be flat or down as the European Union brings tough new privacy regulations on May 25.

Facebook also has plenty of properties where it's starting to make more money beyond the main social network, like the popular chat apps WhatsApp and Messenger and the photo-sharing app Instagram, which is expected to reach a billion users this year.

More news: Willie Snead Will Play for Ravens After Saints Decline to Match Contract

Zuckerberg said the two days of hearings this month were "an important moment for the company to hear the feedback, and to show what we're doing".

Related Articles

  • Chelsea, Arsenal target Ancelotti handed Italy job

    Chelsea, Arsenal target Ancelotti handed Italy job

    We couldn't talk about the programme and the financial side. "Since we are obliged to respect the rules, we spoke about other things".
    OnePlus 6 will feature glass back design

    OnePlus 6 will feature glass back design

    The report further stated that the said reader has been selected by the company for its new Lab programme which began last week. Lau says that OnePlus tested more than 70 glass prototypes before settling on the one it's going to use for the final product.
    Asus Zenfone Max Pro M1 Launched; Priced in India at Rs 10999

    Asus Zenfone Max Pro M1 Launched; Priced in India at Rs 10999

    The 5000mAh battery on the Zenfone Max Pro coupled with the power efficient Snapdragon 636 SoC , the battery life was exceptional. Connectivity options includes- Wi-Fi 802.11 a/b/g/n, Bluetooth 4.2, Micro-USB, Location, 3.5mm audio-jack, and 4G VoLTE.
  • Allison Mack Released On $5 Million Bond

    Allison Mack Released On $5 Million Bond

    Raniere was arrested last month on federal charges of sex trafficking , sex-trafficking conspiracy and forced labor conspiracy. Mack repeatedly reached out to " Harry Potter " star Emma Watson in 2016, asking her chat about joining a "women's movement".
    Salah for €42m & the 15 most undervalued players in history

    Salah for €42m & the 15 most undervalued players in history

    Currently, Liverpool is third in the Premier League , behind Manchester City and Manchester United . Salah was named PFA Player of the Year at the ceremony in London on Sunday night.
    Police Taser, Arrest Man Accused of Fondling Passenger on Plane

    Police Taser, Arrest Man Accused of Fondling Passenger on Plane

    Officer Desroches slapped Garcia's hand away, and Garcia made a second reach that Desroches parried. Police officers then entered the American Airlines flight to try and control the unruly individual.
  • Vieira 'ready for Europe' amid Arsenal links

    Vieira 'ready for Europe' amid Arsenal links

    Vieira was brought to Arsenal by Wenger in 1996, and won three Premier League titles and three FA Cups before departing the club nine years later.
    Spotify makes improvements to its ad-supported experience

    Spotify makes improvements to its ad-supported experience

    Now that Spotify is officially a public company , it has to continually make more money year-over-year to appease shareholders. While the basic goal of the app remains the same, it has undergone various changes which would benefit the free subscriber.
    Israel Air Force opts out of USA  drill as Iranian threat looms

    Israel Air Force opts out of USA drill as Iranian threat looms

    Iran's Fars News Agency published photographs and names of three Revolutionary Guards personnel who it alleged had been killed in the strikes.
  • What is Recommendation from Analysts on Lloyds Banking Group Plc (LYG)?

    What is Recommendation from Analysts on Lloyds Banking Group Plc (LYG)?

    Aluminum producers are sinking after the Treasury Department moved to ease sanctions against Russian aluminum company Rusal. If we checked the overall image of stock during recent quarter then we found that stock performance is trading down -9.49%.
    Days of Mass Protests in Armenia

    Days of Mass Protests in Armenia

    During hastily organized and televised negotiations , Pashinyan said that the protesters' main demand was Sargsyan's resignation. On April 24, Prime Minister of the Republic of Armenia Karen Karapetyan met with Artsakh Republic President Bako Sahakyan.
    AI flight faces turbulence, leaves 3 passengers injured; window panel comes off

    AI flight faces turbulence, leaves 3 passengers injured; window panel comes off

    Passengers on an Air India flight have been left shaken after an inside part of a window panel fell off due to violent turbulence. Adding to the fear, a couple of oxygen masks had also deployed and the overhead panel cover of seat 12-U got cracks.