In the fourth quarter, he was able to get above Wall Street analysts’ estimates. However, the slowdown in profit growth is driving down share prices. Facebook, which reached 2.5 billion monthly users, grew 2 percent compared to the third quarter.
At this point, let us remind you that the company reached 2.45 billion monthly users in the third quarter of 2019, up 1.65 percent from the previous quarter. Facebook increased the number of daily active users by 2.4 percent from 1.62 billion in the third quarter to 1.66 billion daily active users. 3. The number of daily active users of the company. 2 percent in the quarter.
Let’s also note that Facebook has managed to gain 1 million days of users in Kanda and the United States, the regions with the highest revenue. Last year, Facebook’s growth in the region slowed considerably in terms of its user base and almost came to a standstill. Let’s add that the Facebook daily user rate is 66 percent compared to the monthly user rate.
The company generated .08 billion in revenue in this quarter, bringing its earnings per share to .56, up 25 percent year-on-year. The company’s net income grew by just 7 percent to .3 billion. When we look at the company’s year-on-year growth rates in this area, we see that it has grown by 61 percent in 2018. Therefore, it is possible to say that there is a serious slowdown in net income growth.
Facebook’s operating margins, at 45 percent in 2018, fell to 34 percent in 2019. Costs rose 34 percent to .2 billion compared to the fourth quarter of 2018. Facebook’s annual costs increased by 51 percent compared to 2018 to billion.
One of the biggest reasons for this rise in costs is the rise in the number of employees of the company. The number of employees increased by 26 percent year-on-year to 44,942. Facebook has more than 1,000 engineers working on privacy.
Nor can we disdain the role of the penalties the company has received in the increase in costs. In fact, Facebook’s CFO, David Wehner, today confirmed that he agreed to pay 0 million to an agreement for violating the Illinois Biometric Information Privacy Act.
The class action lawsuit, filed in 2015, was filed because Facebook collects users’ facial recognition data to support the Tag Suggestions feature, which recommends that your friends tag you in photos they appear. This amount to be paid raises the bar for now amid legal agreements made by Facebook; Facebook is under a billion fine expected to be taken as a result of the lawsuit.
Facebook’s user base continues to grow steadily, while the company’s revenue through this user base is becoming increasingly difficult. Facebook, on the other hand, has been able to put forward a picture above Wall Street analysts’ estimates.
Analysts said the company would generate .87 billion in revenue in the fourth quarter of 2019, with earnings per share of .51. Facebook’s shares; The stock market rose 2.5 percent to 3.23, a decrease of 2.5 percent, with fourth-quarter figures released at the end of the day.
Facebook, which has also included app family data in its earnings reports for some time, also included a new statistic in its fourth quarter report, “Average Revenue per User in the App Family.”
The company announced that 2.26 billion users open one of their Facebook, Messenger, Instagram or WhatsApp apps every day. Let’s remind you that figure was 2.2 billion in the third quarter. The app family grew by 9 percent year-on-year, reaching a total of 2.89 billion monthly active users.