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After report of last quarter's bloodbath benefits, which cut Facebook's revenue by 20% share prices, the social network stumbled in the third quarter of 2018, reaching 2.27 billion monthly users, up 37 million or 1.79%, a level slightly higher than the slowest growth rate ever recorded in the first quarter, 1.54%, against 2.29 billion estimated on Wall Street. He added that 24 million daily active users reached 1.49 billion, up 1.36% from 1.44% in the first quarter, missing the estimate of 1.51 billion.
But true growth depends on the major US / Canada and Europe markets, where Facebook has not grown and lost 1 million users per month in the last quarter. In the third quarter, Facebook added 1 million monthly users to reach 242 million in the US / Canada region, but remained unchanged at 185 million daily. It has lost 1 million users in Europe, both in the daily and monthly. These markets represent more than 70% of its turnover. That's why slow growth and contraction scare Wall Street.
In terms of Facebook's business, the company reported revenue of $ 13.73, compared with Refinitiv's consensus forecast of $ 13.78 billion, and earnings per share of $ 1.76 against an estimate of $ 1.47, which gives a mixed report. Revenues rose 33% year-over-year, but are much slower than the 49% year-over-year gains and the 59% recorded in Q3 2016.
Facebook has blamed the managers of foreign exchange $159 million in the third quarter, which was the difference between its shortfall and a revenue beat. Mobile accounts for 92% of Facebook's advertising revenue, up from 91% in the last quarter. So, if you think of the social network, make sure you do not think of a desktop website.
The Facebook share price closed at 146.22 USD before the release of the results, which represents a considerable drop from the record high of 217 USD before the announcement of growth issues in the number of shares. 39 users and the slowdown in revenue growth in the report on the second quarter results. Facebook shares climbed 2% after the announcement of the results, thanks in part to the $ 5.14 billion profit generated by Facebook and the addition of a million dollars. 39 users in the North American region after the end of the last quarter.
But in the long run, Facebook can not tap the growth of its core markets for expansion in Asia-Pacific and developing countries. The average Facebook-by-user business figure in the world is $ 6.09, but the regional differences are striking. It earns $ 27.61 per user in the United States and Canada, and $ 8.82 in Europe, but only $ 2.67 in Asia-Pacific and $ 1.82 in the Rest of the World region. In fact, the ARPU has dropped 4% in the rest of the world, indicating that users may spend less minutes per day browsing the news feed and broadcasting news. # 39; ads.
Facebook hoped to show that her business could continue to grow, even as she was investing heavily to double her content security and moderation team from 10,000 to 20,000 this year. He noted that "more than 2.6 billion people now use Facebook, WhatsApp, Instagram or Messenger each month", compared to 2.5 billion last quarter. Another new statistic has also been revealed: "More than 2 billion people use an average of at least one of our family services each day." The goal of these two statistics is to divert the attention of Facebook's slow growth by reminding people that departing users are going to their other properties.
Nevertheless, the company's revenues and profits have been overshadowed by the endless parade of scandals ranging from electoral interference to the greatest security breach ever recorded. In the next quarter, we'll see if the breach scared users or if Facebook, by logging off for security reasons, led some to never log back in again.
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