Facebook’s Growth Continues Despite Growing Controversies

Facebook (Nasdaq: FB) had a tough 2018 as it dealt with several concerns on privacy, fake news, and emotional well-being of its users. The stock had soared to a record high last summer before it reported a decline. It still hasn’t recovered to its former glory, but 2019 is proving to be more promising so far. Its recent fourth quarter result announcement sent the stock climbing nearly 11% in a single day – making it the biggest single day climb recorded by the company in the last two years.

Facebook’s Financials

Facebook’s Q4 revenues grew 30% over the year to $16.91 billion, ahead of the market’s estimates of $16.39 billion. Net income for the quarter came in at a record $2.88 billion. EPS of $2.38 was significantly ahead of the Street’s forecast of $2.18 for the quarter. Average revenue per user also grew 21% from the third quarter and 19% from a year ago to a record high of $7.37, which beat expectations of $7.11.

By segment, advertising revenues grew 30% over the year to $16.64 billion. Revenues from payments and other fees grew 42% to $274 million. Overall mobile advertising revenue now accounted for 93% of advertising revenue, compared with 89% a year ago.

The user results were impressive for the company that has seen a significant backlash in recent years. Daily active users grew 9% to 1.52 billion. In the U.S. and Canada, its daily-active-user count grew to 282 million from 277 million a year ago, and monthly active users grew to 242 million from 239 million.

Overall, there are nearly 2.7 billion people globally using Facebook, Instagram, WhatsApp, or Messenger services every month. Facebook claims that more than 2 billion people use at least one of Facebook’s services every day.

Despite all the issues faced by Facebook last year, it saw revenues grow 37% over the year to $55.84 billion. Advertising revenues grew 38% to $55 billion and payments and other revenues grew 16% to $825 million. Net income for the year grew 39% to $22.1 billion. Adjusted EPS came in at $7.57 for the year compared with $5.39 reported a year ago.

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