The age of nonstop growth in Facebook is just over. The company is far from the start of the downsizing, but it seems that growth has stopped and is sometimes declining in the US and Canada as well as in Europe.
According to the third quarter of 2018 performance report, the number of active users per day in the US and Canada was 185 million, and the number of users in Europe was 279 million, It has been reduced to one million. The latter may be a direct result of recent European privacy regulations such as the recent GDPR. GDPR caused Facebook to lose 1 million users in May for the first time in May.
Overall, the company is growing steadily, thanks to international expansion, with a daily active user base of 9.1% year-on-year, totaling 1.47 billion. The total number of active users per month was 2.72 billion, up 10% from a year ago.
But with it, the company continues to grow at a phenomenal pace, and the rate of Facebook growth continues to decline quarterly and year after year. It also does not grow anymore in the markets with the most revenue per user (North America and Europe). Therefore, critics and analysts are concerned about the future due to the fear of more users leaving and the lack of new users, and the declining advertising revenue.
Facebook reported that advertising revenue rose 33 percent to $ 13.73 billion, according to Wall Street analysts. Profits were well above analysts' expectations of $ 1.76 per share. Monthly and daily active user increases are all included in Wall Street forecasts. Nonetheless, the company warned investors and the press about the case this quarter after experiencing the biggest drop in US equity markets last quarter. Thus, Facebook stock prices are stable and stable in after-hours trading.
In Europe, users were kidnapped in the US / Canada, the company's most profitable advertising market.
Wall St. has not been that surprised so far. They found this to come. However, while Facebook's short-term financial performance continues to stay at the top of Silicon Valley, Mark (19659009) Unless Zuckerberg CEO makes an important transition, the long-term future of the company still looks less rosy. In particular, Zuckerberg considers the future of Facebook to be story-centric. It means permanent and personal messaging in both the Facebook and ecosystem of messaging applications. In addition, our flagship news feed product will soon be behind the video with Facebook Watch and more community-focused products like groups, events and pages.
"Public sharing is always important, but people want to share it privately," Zuckerberg said in a performance report this afternoon. "People feel comfortable when they know that their content is only visible to small groups and will not be forever." But to move from story, video and community to a thriving world on Facebook, the company should keep users from leaving. This is done through security enhancements, concerns about user privacy, false news, junk and other unsolicited share-type platform cleanup.
Over the last two years, Facebook has been most prominent in the Cambridge Analytica incident in March and has maintained many notable data privacy and security scandals, including the most recent hacker having a huge security hole to steal it. After tens of millions of user login information and the 2016 US election, Facebook has become a breeding ground for spying and misinformation about foreign governments, as well as conspiracy theories, fake news and propaganda, as well as Russia. Some are confused by the voting age Americans through broad-impact campaigns like Russia. The most recent example is an Iranian group campaign to seek division within the United States ahead of next week's mid-term elections.
While this debate did not really affect Facebook's revenue, at least the public perception of the company is still at an all time low. Facebook will eventually feel the impact of users leaving the platform as a green pasture unless they find a way to better tune the platform. (The company grew 45% year over year, adding tens of thousands of new contract workers and increasing its number of employees to about 34,000.)
Facebook is an ecosystem of apps and services like Instagram and WhatsApp, the core social- It is meaningful that you are making a lot of investment in. If the main Facebook app continues to decline, they can help keep the business alive. Facebook has announced that 2.6 billion people use Facebook, WhatsApp, Instagram, or Messenger each month (our family's services) each month and more than 2 billion people use at least one of our family's services product. "
It's clear that the core Facebook app will not be left forever, regardless of story, so other platforms are shifting resources to fill that gap. Instagram has lost its co-founder, but there's plenty of room to grow the ad business, And WhatsApp have just begun to monetize their channels to reach their customers. Do-it-all The role of Facebook as a social network is over, but the future of a successful photo sharing and messaging application as a web
Eastern Time 10/30, 6:15 pm update : Details added on Facebook's import report