Facebook Inc (NASDAQ FB) released its highly-anticipated Q3 report on Tuesday, October 28th. In the past 10 years since Facebook’s inception, the website has gone from a mere vision in a Harvard dorm room to a household name and cornerstone of social media.
In the Q3 report, Facebook Inc (NASDAQ FB) reported $0.43 earnings per share on a Non-GAAP basis, beating the analyst consensus of $0.40 and marking a 59% year-over-year increase. Facebook posted revenue of $3.20 billion, beating the analyst estimate of $3.12 billion and marking a 59% year-over-year increase. Additionally, Facebook saw a year-over-year increase in both daily active users and monthly active users, increasing to 864 million and 1.35 billion, respectively.
Facebook Inc (NASDAQ FB)’s Q3 report triggered mixed reactions. Investors were pleased that the Q3 report came in ahead of all projected earnings and that Facebook experienced its first $3 billion quarter. The 14% increase in mobile users from last quarter also gave investors a reason to celebrate. However, not everyone was thrilled by the report. Wall Street was quick to note that user growth had slowed to 2.27% from 3.125% last quarter.
Facebook Inc: Reactions to Q3 Results
Specifically, user growth considerably slowed in Asia, where Facebook currently has 426 monthly average users. Additionally, Facebook Inc (NASDAQ FB) has yet to see any profit derived from WhatsApp; a messaging application that it bought for $19 million in February of this year.
Mark Zuckerberg, Facebook founder and CEO, doesn’t seem fazed by this as he explains, “For us, products really don’t get that interesting to turn into businesses until they have about one billion people using them,” focusing efforts on increasing the user base from the current 600 million users before trying to turn a profit.
Moreover, the public was troubled that Facebook did not release user data specifically on teen usage; a demographic that could have a significant impact on overall user data. Some believe that teens are not flocking to Facebook as quickly as they once were, but this data has not been verified.
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Facebook Inc (NASDAQ FB) Business News
Overall, Zuckerberg seemed pleased with the quarter. “This has been a good quarter with strong results. We continue to focus on serving our community well and continue to invest in connecting the world over the next decade,” he said in a statement.
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