Facebook grows ad sales and active users

Facebook

Facebook

Facebook's first-quarter revenue, a major chunk of which comes from ads, jumped 49 per cent to $11.97 billion (U.S.), and profit climbed 63 per cent to almost $5 billion, according to a report released Wednesday, the first since news of the Cambridge Analytica scandal broke in March.

The company made $11.97bn in revenue in the first three months of the year, up 49% from the previous year, beating Wall Street estimates of $11.41bn.

Facebook handily beat analysts' expectations on both the top and bottom line for its first quarter of 2018 - sending its stock jumping more than 7% in after-hours trading on Wednesday.

It is spending to ensure users are not scared away by scandals. Daily active users also increased, including in Facebook's most popular market: the United States and Canada, where the company saw its first-ever decline last quarter. Monthly active users grew over the last quarter, reaching 2.2 billion worldwide.

Another area of growth is the company's headcount, which increased by 48% to 27,742.

On Tuesday, Facebook announced Kevin Martin, a former Republican chairman of the Federal Communications Commission, would become its interim head of USA policy, replacing chief privacy officer Erin Egan, as the company continues to grapple with the political fallout from the Cambridge Analytica controversy.

Cambridge Analytica, a data firm with ties to President Donald Trump's campaign, accessed information from as many as 87 million Facebook users without their knowledge.

In the hours following the release of the first-quarter numbers, company shares climbed more than 5.5 percent to $168.50.

Babcock encourages Leafs to embrace Game 7
In fact, prior to previous year , the two teams had not been in the post-season at the same time since the square opened in 2010. Patrice Bergeron also scored at 19:23 of the first period and the line as a whole had three goals and four assists on the night.

During Facebook's Q1 conference call on Wednesday, Zuckerberg revealed one of his "great regrets" about his stewardship of the company.

"It's clear now we didn't do enough to prevent these tools from being used for harm as well - whether it's foreign interference in elections, fake news, hate speech or app developers and data privacy", Zuckerberg stated.

But Williamson said some of Facebook's momentum was already fading due to other factors such as disinformation, social media fatigue and new platforms attracting young people.

In another sign public anger directed at Silicon Valley hasn't hurt business, Twitter and Alphabet, Google's parent company, also reported strong financial results this week.

In addition, in recent weeks, Facebook announced it would require everyone running political and issue-based advertising to be verified with government identification.

Facebook chief financial officer David Wehner said use of the social network might ebb slightly in Europe due to GDPR, but executives were confident its ad business was on firm footing since the rules affect its competitors as well.

However, contrary to stand taken by Cambridge Analytica, Facebook had said that around 5.62 lakh people in India could have been impacted by the data breach undertaken allegedly by the political consultancy. The question for analysts will be whether the declines are truly Facebook's own design or a reflection of user preference.

Zuckerberg said the two days of hearings this month were "an important moment for the company to hear the feedback, and to show what we're doing".

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