Facebook is growing despite the privacy scandals now counting 1.45 billion daily active users. Users on the whole are also growing and recovering positions lost in the US. Turnover also exceeds Wall Street expectations: 11.97 billion in 3 months.
Facebook grows despite the Datagate scandal and active users on a daily basis rise to 1.45 billion
Facebook grows despite the scandals: $ 11.97 bn turnover in the first quarter
Despite the heavy criticism of data privacy that also led CEO Zuckerberg to be questioned by the US Congress, Facebook showed an absolute resilience of its advertising machine, exceeding the $ 11.41 billion turnover estimate that Wall Street had made: the data financials in the first quarter of 2018 say that Facebook achieved a turnover of $ 11.97 billion in the quarter.
Facebook is growing despite the scandals: 1.449 billion daily active users
Facebook added 48 million active users every day, reaching the figure of 1.449 billion, up 3.42%, marking vigorous growth after a more tense period with increases of 2.18% (last quarter's data). Facebook has, however, only added 70 million active monthly users in total, reaching 2.196 billion, a growth rate of 3.14%, a little weaker than the 3.39% growth of the last quarter. Both daily and monthly users have increased by 13% year on year, demonstrating that Facebook's problems have not paralyzed its growth.
Facebook grows despite the turmoil
This was perhaps the most tumultuous quarter since Facebook was listed. Facebook faced strong criticism in connection with the Cambridge Analytica scandal and because of its practices regarding data privacy and Zuckerberg was required to testify before the United States Congress. The last quarter saw the first decline of Facebook users, with a decrease of 700,000 users in the US and Canadian markets.
The recovery of Facebook in the USA
This FB quarter was able to revive the growth of users in the United States and Canada, bringing it back to 185 million, from 184 million in the last quarter, even if only a return to the point where it had already arrived in Q3 of 2017. The number of active monthly users increased from 239 to 241 million. It shows us that while people may not agree with Facebook's approach to privacy, they are not giving up their profile on Facebbok and their news feed.
Facebook grows mainly in the Mobile
As a demonstration of the decreasing presence on Facebook's traditional web, mobile has totaled 10.7 billion dollars in revenue, or 91% of all advertising revenue, up compared to 89% in the last quarter. Average revenue per user reached $ 5.53, up 30 percent year-on-year due to strong quarterly gains in Europe and Asia-Pacific. The number of Facebook employees grew by 48% year-over-year and now half-way compared to the promise to double the staff dedicated to security and content moderation from 10,000 to 20,000 by 2018.
Will Facebook continue to grow?
The question now is whether the new transparency requirements for advertisements, the revision of the development platform and Facebook's attempt to make itself healthier will affect next-quarter earnings. These changes could discourage advertisers, offer users less functionality and remove low-quality viral content that could upset users, but keep them running on the platform.
Facebook grows: the words of Mark Zuckerberg
CEO Mark Zuckerberg wrote that, despite the major challenges, our community and our business started off strongly in 2018. We are taking our responsibilities into consideration and investing to make sure that our services are used well. But we must also continue to build new tools to help people connect, strengthen our communities and bring the world closer ".
The other goals of Facebook
Zuckerberg said that Internet.org has helped nearly 100 million people connect to the Internet, compared to 40 million in November 2016.
Zuckerberg also said that 200 million people are now in "significant groups", compared to 100 million last year, although Facebook has a long way to reach its goal of one billion.
WhatsApp has 300 million daily users.
Since users are switching from reading feeds to watching stories, Facebook states that it is necessary to make ads in the stories as effective as feed ads to protect the revenue stream.
The GDPR will decrease Facebook users in Europe
Facebook CFO David Wehner warned that the GDPR could cause the number of European Facebook users to decrease in the second quarter and that it could have a small impact on advertising revenue.
Zuckerberg claims that one of his biggest regrets that Facebook could not help shape the mobile ecosystem because the company was still small when iOS and Android were launched. That is why Zuckerberg firmly believes that Facebook has an important role in the future of virtual reality and augmented reality, which considers the platforms of the future.