Zuckerberg Envisions “Privacy-Focused Future” as FB Shares Soar on Expectation of $5 Billion in Fines over Privacy Concerns
Recently, Twitter and Snapchat released its better than terrible revenue data for Q1 that had all the eyes on Facebook which met user growth and beat market expectations on revenue.
Q1 revenue amounted $15.08 billion that was up from the estimated $14.97 billion. While revenue did manage to do slightly fine, user growth met the mark as 1Q had 2.38 billion active users, up 10 million from estimated figures. Daily active users in quarter 1 have been exactly as estimated at 1.56 billion.
Facebook Daily & Monthly Active Users Increased 8%
Facebook’s first-quarter revenue was 26% better than the projected 25% while both daily active and monthly active users increased by 8% year-over-year. But the US and Canada have seen no user growth in the last two years.
The social media giant is reaching saturation point in its most lucrative markets, the US and Europe. However, Bloomberg notes, faster growth is coming from developing countries but they aren’t as profitable. The sale gains of the company are increasingly driven by its photo-sharing app Instagram.
“More than 2.1 billion people now use Facebook, Instagram, WhatsApp, or Messenger every day on average, and around 2.7 billion people use at least one of our Family of services each month,”
Facebook headcount registered an increase of 36% year-over-year which was 37,773 as of March 31, 2019.
In after-hours trading, after the company reported earnings for its fiscal first quarter, Facebook stock (ticker: FB) was up about 8 percent.
Facebook Expected To Pay Up To $5 Billion For Its Privacy Missteps
While talking about its “good” quarterly growth, Mark Zuckerberg, Facebook founder and CEO also shared the future plan for FB,
“We are focused on building out our privacy-focused vision for the future of social networking, and working collaboratively to address important issues around the internet.”
However, it is not all that the quarterly report revealed, the costs of the company soared 41%. Notably, Facebook confirmed a $3 to $5 billion charge related to an ongoing privacy investigation by the US Federal Trade Commission (FTC) and
“the matter remains unresolved, and there can be no assurance as to the timing or the terms of any final outcome.”
Facebook has been in negotiation with the regulator for months now over a financial penalty for claims that the company violated a 2011 privacy consent decree. Last year, the FTC opened a new investigation after the social media giant came under fire for not protecting its users’ data from being harvested by British political consulting firm, Cambridge Analytica without their consent.
Moreover, it also suffered a data breach that exposed the personal information of about 50 million users.