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Facebook survives Q4 despite slowest daily user growth ever

Facebook survives Q4 despite slowest daily user growth ever
From TechCrunch - January 31, 2018

Despite worries about Russia and that passive News Feed scrolling hurts us, Facebook beat expectations again in its Q4 2017 earnings report. Facebook now has 1.4 billion daily users, up 2.18% compared to growing 3.8% to 1.37 billion users in Q3. Thats a sizeable slow down, and the lowest quarter-over-quarter percentage daily user growth ever reported by the company.

That could be because CEO Mark Zuckerberg says Facebook made changes including showing fewer viral videos that reduced time spent onFacebookby roughly 50 million hours every day. That equates to 2.14 minutes per daily user per day,or 5% of total time spent on Facebook. The viral video changes triggered Facebooks first-ever decline in daily active users in the US & Canada region, which saw a 700,000 user decline.

Facebook reached $12.97 billion in revenue with $2.21 adjusted GAAP earnings per share if you dont count a massive tax it had to pay on overseas cash that translated into a $0.77 reduction in EPS. Without that tax, it beat Wall Streets estimates of $12.55 billion in revenue and $1.95 EPS, but with it reported $1.44 EPS.

Facebooks monthly user count is now at 2.13 billion, up 3.39% from 2.06 billion in Q3 compared to 3.19% growth that quarter, so the monthly user growth sped up even as daily user growth slowed. Yet Facebooks stickiness, or the percentage of monthly users that come back daily, held strong at 66% where its been since 2015. That shows people are still avidly returning to the site even if they spend less time there.

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