Facebook Inc. Earnings Climbs, but Growth Worries Begin

Business - Pavan Pandey - Nov 17,2016

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facebook earnings climbs but growth worries begin

Facebook’s earning revenue touched $27 billion this year, however, in 2017, ad revenue growth can taper, according to company’s CFO David Wehner. On Wednesday, the social media giant Facebook announced its third-quarter revenue earning in another hit earnings performance. Facebook revenue soared up 56% to almost 7 billion and its third-quarter revenue nearly tripled to 2.38 billion. According to the third-quarter result, the actual profit jumped 166 % on revenue $7 billion from $4.5 billion through the similar period a year before.

The Co-founder and Chief Executive Officer Mark Zuckerberg said on earnings publication that, “We had another good quarter” and “we are making progress placing video first through our apps and implementing our 10-year technology roadmap’. CEO Zuckerberg has positioned a long-standing vision for Facebook that includes virtual reality (the computer created simulation of a three-D image or environment), artificial intelligence and also providing internet facilities to inaccessible areas through self-flying drones.

According to Facebook, increasing the number of ads could negatively impact user experience. Facebook is still developing its user base extraordinarily, adding almost 80 million new users last quarter to bring the total to 1.79 billion users in total. More than 1 billion people now use the Facebook on a mobile device with the Facebook application. Facebook control one of the world’s leading mobile ad businesses, which is where business marketers want to use their money. 

According to the social media network, the revenue from mobile advertising calculated about 84 % of the ad money received by the Facebook during the quarter and its soar up from 78% which was calculated during the similar in a third quarter period in the last year. Facebook earns money by inserting ads into the news feed section and the main roll of pictures, videos and ad posts, but putting too a lot of ads in the news feed could turn off users from the login.