Facebook Declares

Facebook Declares an Increased Quarterly Profit

Facebook declared that its quarterly profit had climbed to $6.9 billion as the users count also has been increasing despite scandals that have dented the leading social network’s image.

As per the fourth quarter update report, revenue hiked 30 percent from a year ago to $16.9 billion while the number of people using it monthly rose nine percent to 2.32 billion.

Facebook’s profit was up a robust 61 percent from the same period last year. The internet giant makes most of its profits from online advertising.

“Our community and business continue to grow,” co-founder and chief executive Mark Zuckerberg said in an earnings release.

After the release of the quarter results, Facebook shares jumped 7.7 percent to $161.99 in after-market trades that followed the release of the earnings.

However, California based social media leader had an inflated cost by 62 percent in the fourth quarter as it continued to spend heavily in people and artificial intelligence to guard against manipulation, misinformation, and misuse of people’s data.

As per the latest statistics, Facebook has 35,587 employees, an increase of 42 percent year-over-year.

“We’ve fundamentally changed how we run our company to focus on the biggest social issues, and we’re investing more to build new and inspiring ways for people to connect,” Zuckerberg said.

The latest report shows that Facebook had increased its user base both in the United States and Europe, where the social network has faced challenges over data protection scandals.

Industry tracker eMarketer expects Facebook’s share of the global digital ad market would grow this year as well. The social network giant claims 20.5 percent of an overall $327.28 billion spent.

But as per analysts, the trust issue is crucial and a big factor for Facebook if it wants to move forward on its mission to connect the world.


Mattie Kirkpatrick is FinanceThrive's journalist and news writer with years of experience in covering finance and business related events and news updates. She has worked as a freelance news writer covering general news, and now specialises in finance industry.

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