Facebook Inc. it may have a purpose on its corporate back, but it continues to move forward. Shares jumped about 5% on Wednesday's trading after the company announced third-quarter results that consistently outperformed analysts' revenue forecasts and topped earnings estimates.
The social networking giant reported net income for the third quarter of $ 6.09 billion, or $ 2.12 per share, up from $ 5.14 billion, or $ 1.76 per share, from a year ago .
Revenue jumped 29% to $ 17.65 billion from $ 13.73 billion a year ago. Advertising sales accounted for 98% of total revenue, or $ 17.38 billion.
Analyzes surveyed by FactSet estimated a $ 1
"We had a good quarter, and our community and business continue to grow," Facebook CEO Mark Zuckerberg said in a statement. "We are focused on making progress on basic social issues and building new experiences that improve the lives of people around the world."
also announced the departure of board member Susan Desmond-Helman, executive director of the Bill and Melinda Gates Foundation, after six years for personal and health reasons. Her shift to the seven-member board is expected "in the coming months," Facebook said in an SEC filing.
Read more: Facebook Profits: What Distractions? Another quarter is expected
Monthly Active Consumers (MAUs), a major barometer of company growth, improved by 8% to 2.45 billion, as predicted by FactSet analysts.
About 2.8 billion people use Facebook and its properties, WhatsApp, Instagram and Messenger, every month, Zuckerberg said in a conference call after the earnings announcement.
Quarterly results underscore what has been a constant rainbow all year: Despite a Federal Trade Commission investigation into its business practices, a record $ 5 billion fine from the FTC this year for privacy violations and a conga of angry politicians who calling for it to be sliced and diced, Facebook continues to publish solid results. The same is true of the other big tech companies that face regulatory scrutiny: Apple Inc.
AMZN, + 0.98%
and Alphabet Inc.
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"We are facing major regulatory and social problems," Zuckerberg acknowledged during the conference. He reiterated his preference for a "very set level" of federal rules.
"A lot of antitrust questions will be about our acquisition on Instagram," Zuckerberg said in response to an analyst's question. "But we think [its business] was a lot more complementary than we thought … At the end of the day, it's a decision by the FTC."
Earlier, the Facebook co-founder took the opportunity at the conference to They are doubling the company's recent advocacy for freedom of expression and expression, especially in political ads, as the 2020 presidential campaign intensifies. "We will be at the center of the debate next year," he said. "I expect it to be a very difficult year … but it's complicated." He added that political ads would represent less than 0.5% of total revenue in 2020.
But not all numbers for Facebook is pink.
During the conference, Facebook Chief Financial Officer David Wechner warned of a "pronounced delay" in Q4 earnings over the background of overlapping products and of "targeting headwinds". It saw a 32% increase in third quarter spending and spending to $ 10.5 billion.
Then the real Facebook product was actually used. Americans spend 26% less time on Facebook than they did two years ago and are increasingly using other social networks as an alternative, according to a new study by market researcher Active Inc.
Facebook users spent an average of nearly 13 hours per month on the platform in 2017; today, that figure is down to 9.28 hours, Active reported. At the same time, US social media users belong to 5.8 different social media networks; by 2023 it is projected to be 10.
Facebook stocks have grown 44% this year, while the S&P 500 index
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has accumulated 21%.