Has Facebook’s Growth Really Come To A Halt?
Facebook, the current social media giant in the market, announced that it has managed to grab $3.2 billion of revenue in the third quarter of 2014. This means it is up by 37%, compared to last year’s earnings. Facebook reported 43 cents a share on net profits of $1.15 billion.
“This has been a good quarter with strong results,” Facebook CEO Mark Zuckerberg said in a press release. “We continue to focus on serving our community well and continue to invest in connecting the world over the next decade.”
The company’s user base continues to grow rapidly, but there has been a gradual slowdown in the overall growth of the company like Twitter’s. While Facebook boasted of 1.35 billion active users, it did admit to seeing a drop of 0.9% in the growth of the user base as compared to Q2 of 2014.
To sum up the operations in Q3 of 2014:
- Daily active users (DAUs) were 864 million on average for September 2014, an increase of 19% year-over-year.
- Mobile DAUs were 703 million on average for September 2014, an increase of 39% year-over-year.
- Monthly active users (MAUs) were 1.35 billion as of September 30, 2014, an increase of 14% year-over-year.
- Mobile MAUs were 1.12 billion as of September 30, 2014, an increase of 29% year-over-year.
Facebook’s mobile app has gained the bigger fish in the net throughout these earnings. About 82% of the total MAUs were mobile users, where there were more than 400 million users who used Facebook only through mobile, and not any other device.
A reason for this halt in the growth is also due to the investors being taken aback by Facebook’s decision to increase spending in 2015. And judging by the seemingly stunted growth, increased spending might be the answer.
Revenues of the company include the following so far:
- Revenue from advertising was $2.96 billion, a 64% increase from the same quarter last year.
- Mobile advertising revenue represented approximately 66% of advertising revenue for the third quarter of 2014, up from approximately 49% of advertising revenue in the third quarter of 2013.
- Payments and other fee revenue was $246 million, a 13% increase from the same quarter last year.
With the company’s mobile app accounting for a massive percentage of the earnings this quarter, Facebook will now have to search for other avenues for expanding their growth. It has already plunged into contacting publishers to host their content on Facebook’s servers, and launched a new app to engage more users.
What does it have in mind for “increased spending in 2015”? We can only upload statuses on Facebook, hypothesizing about it.