Facebook Reaches 2.27 Billion Monthly Active Users
Facebook Inc. (NASDAQ: FB) has reported that the company’s social network now has 2.27 billion monthly users. That was less than the 2.29 billion Wall Street analysts expected the company to report. The company reported a slight dip in European users, but offset the loss with gains in the Asia-Pacific region.
Daily active users for the social network site reached 1.49 billion in the quarter, lower than the 1.51 billion estimated. The company reported that Facebook, Instagram, Messenger and WhatsApp together now serve more than 2 billion people daily. That number is up 100 million from last quarter.
Revenue was slightly below what Wall Street analysts expected at $13.7 billion versus $13.8 billion estimated. Facebook made $27.41 per user in the US and Canada in the third quarter. In the Asia-Pacific region, the company made 2.67 per user. For the rest of the world, Facebook made an average of $1.82 per user.
Overall, Facebook reported $5.1 billion in profit this quarter. Earnings per share exceeded analyst expectations at $1.76 versus $1.47 estimated. More than 92 percent of its advertising revenue for the quarter came from mobile advertising. Mobile advertising revenue was up 88 percent year-over-year.
During the earnings announcement, Facebook told investors to expect increased expenses in 2019 as the company plans to invest significantly in the business. Facebook CFO David Wehner said 2019 total expenses will grow 40 to 50 percent compared to full-year 2018. The company is expecting between $18 billion to $20 billion in capital expenditures in 2019
In 2019, the company plans to focus on building out a number of new products, including Facebook Watch, Instagram TV, and Facebook Marketplace. Mark Zuckerberg, Facebook’s chief executive officer, said in a press release, “We’re building the best services for private messaging and stories, and there are huge opportunities ahead in video and commerce as well.”