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Facebook Inc. beat Wall Street expectations for profit Tuesday, the public-relations crisis over the past several months.
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third quarter of the stock market has been reported, but settled at earnings of roughly 3%. As the numbers hit the wire, Facebook stock after hours trading, but recovered minutes later, and recovered after the day. surprise.
Last quarter, Facebook stock Dove deep into the red when Chief Financial Officer David Wehner delivered Facebook's forecast. Tuesday, though, Wehner appeared to help bring back the stock from its deepest after-hours ravine. Mark Zuckerberg, Chief Executive Officer of the United States, has been hired by the market to start trading, and has been trading at approximately 5%. drop.
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After Wehner wrapped up without devastating news and Facebook turned to analysts questions, shares and continues to do so until the call wrapped up just after 6 p.m. Eastern time.
The CFO said Facebook expects revenue growth to slow by a "mid-to-high single digit percentage" compared to its third quarter, which is slightly better than the single digits forecast Wehner delivered three months ago. We have the same explanation for the fact that we are doing so, and we are going to have an impact on the pricing. slow revenue growth in 2019, he said.
The Menlo Park, Calif.-based company reported $ 5.14 billion in net income for the quarter, which amounts to $ 1.76 a share, up from $ 1.59 a share in the year-ago period. Analysts' average estimates for third-quarter profits called for $ 1.46 a share, according to FactSet.
Overall, Facebook logged sales of $ 13.73 trillion, up from $ 10.14 trillion in the year-go period, just missing $ 13.77 trillion, according to FactSet. Facebook's main source of revenue is ads, which brought in $ 13.54 billion, up from $ 10.14 billion in the year-earlier period. Oculus virtual-reality hardware – banked $ 188 million compared with $ 186 million last year.
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Facebook reported 2.27 billion active users and a daily user count of 1.49 billion, up 10% and 9%, respectively. In the U.S. and Canada, the company's most profitable markets, the daily member has remained flat at 185 million, the fifth consecutive quarter the daily user has remained flat or dropped; monthly users ticked up to 242 million from 241 million in the first and second quarters of this year.
Despite the growth rate in the US and Canada, it was $ 27.11 in revenue per user, up from $ 21.20 in the year-earlier period.
"EMarketer Senior Analyst Debra Aho Williamson wrote in an email. "Importantly, Facebook grew revenue at a leading pace in the US and Canada markets. Facebook also managed to eke out a small use gain in the U.S. and Canada. After the flatness we saw last quarter, that's a good sign. "
"Overall, given all the challenges Facebook has faced this year, this is a decent earnings report," Williamson concluded.
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Those challenges showed up again in Facebook, spending 53% to $ 7.95 billion in the third quarter, while profits grew by 9%. Facebook continued to add to its workforce, growing its head count 45% to 33,606 in the third quarter, compared with the same period last year. Co-founder Zuckerberg has said in the past the company is planning to hire 20,000 people to handle safety and security on its platforms.
Zuckerberg did not dwell on the issues Facebook has faced in the past year, as he has done in the previous conference calls since the Cambridge Analytical data-privacy scandal. Zuckerberg did not apologize to single time during the call.
Ahead of Facebook's earnings, several analysts published notes suggesting that advertisers were beginning to take notice of the public-relations crisis the company has been dealing with. Brand advertisers especially have said to be less willing to increase their budgets than in the past. For more major brands and companies, media buyers have considered Facebook Twitter Twitter Inc.
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and Snap Inc.
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are launches or specific, short-term objectives.
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In a phone interview late Tuesday, PMX Agency vice president of social and display Jesse Math said customers have had conversations about Facebook's issues – "It's been a part of conversations with Facebook too" – PMX goal has not seen an impact related to budgets.
"I like a platform that has 1.5 billion people," said Math. "We're focused on driving performance for customers and is a primary driver of that success."
Math says that because of some of the changes in his platform, his organization has suffered. "But that will be solved in the long term," said Math.
Before Tuesday's after-hours trading, Facebook stock had fallen 17.1% this year as the S & P 500 index gained 0.3%. The company's stock dropped roughly 20% after its second-quarter earnings and sales growth. The company also issued guidance that rattled investors.
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