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Facebook beats in Q3 with $4.7B profit, record share price despite Russia

Facebook beats in Q3 with $4.7B profit, record share price despite Russia
From TechCrunch - November 1, 2017

Facebook is still in the middle of its House Intelligence Committee hearing about Russian election interference, but the looming concerns over misuse havent dampened its business as profits continue to soar and its share price hits an all-time high.

Still, CEO Mark Zuckerberg saw it fit to break from his traditional Our business is doing well script to add But none of that matters if our services are used in ways that dont bring people closer together. Were serious about preventing abuse on our platforms. Were investing so much in security that it will impact our profitability. Protecting our community is more important than maximizing our profits.

But those changes havent hit Facebooks profitability yet, as it climbed 79% year-over-year to $4.7 billion. Facebooksannounced Q3 2017 earnings today, continuing its streak of beating estimates. Facebook earned $10.3 billion in revenue and $1.59 GAAP actual earnings per share, compared to estimates of $9.84 billion in revenue and $1.28 EPS. Facebooks EPS is up 76% year-over-year, showing how efficient of a money-maker its become.

Revenue growth was 47% year-over-year compared to 59% in Q3 2016, which matches Facebooks warnings that its running out of space to show ads. Mobile as a percentage of Facebooks ad revenue inched up from 87% to 88% this quarter as it reaches a stabilization point in its successful shift to mobile. Average revenue per daily active user reached $7.51 vs $5.95 a year ago. That 26% increase shows how even as Facebooks daily user growth has grown a more modest 16% over the year, Facebook has found better and better ways to squeeze money out of people.

As for users counts, Facebook now has 2.06 billion monthly active users, up 3.19% compared to last quarters 2.006 billion and 3.4% growth rate. Daily active users reached 1.37 billion, up 3.8% quarter-over-quarter. Facebooks stickiness, or the percentage of monthly actives users that return each day has stayed flat at 66% since Q1 2016. But thats actually a great success, since most apps grow less sticky over time as users churn and the less engaged long-tail signs up.

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