After reporting lower-than-expected growth last quarter, Facebook once again slightly missed Wall Street expectations on monthly active users, and revenue…
After reporting lower-than-expected growth last quarter, Facebook once again slightly missed Wall Street expectations on monthly active users, and revenue in its Q3 2018 earnings report.
Facebook reported 2.27 billion monthly active users and 1.49 billion daily active users this quarter, below an expected 2.29 billion and 1.51 billion.
Last quarter, those numbers were 2.23 billion and 1.47 billion respectively. That also translates into a 1.63 percent growth rate quarter over quarter in DAUs – one of the company’s slowest ever quarter-over-quarter growth rates.
Revenue for Q3 was $ 13.73 billion, up 33 percent percent from Q3 2017. Refinitiv predicted revenue would come in at $ 1
3.78 billion after survey Wall Street analysts.
Net income swelled to $ 5.14 billion, up 9 percent year-over-year.
“Our community and business continue to grow rapidly, and now more than 2 billion People use at least one of our services every day, “CEO Mark Zuckerberg said in a press release. “We are building the best services for private messaging and stories, and there are huge opportunities ahead in video and commerce as well.”
Facebook cautioned during its Q2 earnings call that it expected revenue growth to slow in the second half of the year. CFO Dave Wehner cited increased investments in security, giving users more choices about data privacy, as well as the increased promotion of stories, where ads cost less than Facebook’s traditional bread-and-butter, NewsFeed.
Facebook also reported this quarter that 2.6 billion people use one of its “Family of Apps” each month (Facebook, Instagram, Messenger, and WhatsApp). Last quarter, that number was 2.5 billion. For the first time, Facebook gave a DAU number for its Family of Apps, which comes in at more than 2 billion.
It’s also worth noting that for the second straight quarter, Facebook looses 1 million MAUs in Europe, now down to 375 million.
More to follow
This will be followed by the implementation of GDPR, which Facebook may be aware of its user numbers in Europe.