San Francisco: Facebook on Wednesday reported quarterly earnings and user growth stronger than most forecasts, but shares took a hit in after-market trades.
The leading online social network said net income rose seven percent from a year ago to $7.3 billion (Dh26.8 billion), while revenue increased 25 percent to $21 billion in the final three months of last year.
The number of people using Facebook monthly climbed eight percent to 2.5 billion; for all its apps including Instagram, Messenger, and WhatsApp, the figure was 2.89 billion.
“We had a good quarter and a strong end to the year as our community and business continue to grow,” said Facebook chief executive Mark Zuckerberg.
Investors may be concerned about continuing increases in the amount of money Facebook spends as it pours resources into protecting the privacy and preventing the platform from being used as a platform for hate, abuse, and disinformation.
Facebook still delivered gains in advertising, which represents the vast majority of its revenues, up 25 percent at $20.7 billion in the quarter, and grew its user base.
Costs in the recently ended fourth quarter rose 34 percent to $12.2 billion, and it ended the year with its ranks of employees up 26 percent to nearly 45,000.
The results, while ahead of most analyst forecasts, “may disappoint some investors accustomed to bigger outperformance,” said Baird analyst Colin Sebastian.
(with inputs from Agencies)
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