Facebook sees increased spending as growth slows

Written By Unknown on Rabu, 29 Oktober 2014 | 17.08

Three days before Halloween, Facebook investors got a scare as Mark Zuckerberg's social network predicted a slowdown in growth and a sharp rise in spending.

Despite the treat of having the company beat third-quarter profit and revenue forecasts, the trick of skyrocketing costs spooked investors and sent shares sliding 11 percent in after-hours trading, to below $73.

Facebook shares in regular trading closed at $80.77, up 0.6 percent.

Facebook also signaled a slowdown in fourth-quarter revenue growth — to a range of 40 percent to 47 percent — compared with third-quarter growth of 59 percent.

CFO Dave Wehner attributed the projected expense increase to "a significant investment year," during which Facebook plans to build out such recent acquisitions as Whatsapp and Oculus.

But the market's reaction was to punish the company's shares with a significant after-hours price decline — just as it did the shares of Amazon, Netflix and Twitter following their recent reports.

Not that Facebook's report contained unpleasant surprises.

Third-quarter revenue of $3.20 billion beat the $3.12 billion anticipated by analysts surveyed by Thomson Reuters, while earnings per share of 43 cents exceeded the 40 cents expected by analysts.

Compared with the year-earlier quarter, Facebook's 59 percent revenue increase took the total to $3.20 billion, adjusted net income rose 73 percent, to $1.15 billion, and EPS grew by 59 percent.

The company increased its revenue from advertising by 64 percent, to $2.96 billion — of which 66 percent represented mobile ad revenue.

"They continue to show that there is a lot of demand for their product, both in terms of users wanting to spend time there and advertisers wanting to spend money," said Macquarie Research's Ben Schachter.

COO Sheryl Sandberg underscored the importance of the mobile ad figure — up from virtually nothing at the time of Facebook's IPO in May 2012 — by noting "65 percent of people use their phone while out shopping."

Founder and CEO Zuckerberg kicked off the call by saying, "Facebook is getting strong every day" — a claim corroborated by its having 864 million daily active users (DAUs) in September for a year-over-year increase of 19 percent.

Of those, 703 million were mobile DAUs, representing an increase of 39 percent and yet another sign that consumers are no longer bound to desktop computers.


Anda sedang membaca artikel tentang

Facebook sees increased spending as growth slows

Dengan url

http://susuvirus.blogspot.com/2014/10/facebook-sees-increased-spending-as.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

Facebook sees increased spending as growth slows

namun jangan lupa untuk meletakkan link

Facebook sees increased spending as growth slows

sebagai sumbernya

0 komentar:

Posting Komentar

techieblogger.com Techie Blogger Techie Blogger