Facebook triples the profit but is cautious on advertising in 2017 – Milano Finanza

another quarter of strong growth, but Facebook sees a slowdown in the growth in advertising revenues next year. The net profit in the third quarter almost tripled from $ 896 million in the year-ago to 2,379 billion for an earnings per share improving by 31 cents to 82 cents. Net of components that are atypical, the earnings per share rose from 0.57 to 1.09 in dollars, beating the expectations of the consensus of analysts developed by Thomson Reuters to 97 cents.

Also, revenues were up 56% a 7.01 billion compared 6,92 billion as of the consent. The social network has so placed to mark the sixth consecutive quarter with revenue and profit above analysts ‘ expectations and has gone above and saw that the top managers had anticipated a slowdown in the third quarter because of a base of comparison is not easy.

were the advertising revenue, which increased by 59% to 6,816 billion, to support the sales; of the total of this category, of those generated from mobile devices accounted for about 84% of the total, an increase of 78% in the prior year. Satisfied with the co-founder and ceo, Mark Zuckerberg: “We had another good quarter,” he said. “We are making progress by putting the video in the first place through our app,” he added.

users active on a daily basis, were on average equivalent to 1.18 billion (+17% per annum). Those who use the social network every day, accessing them from a mobile device increased by 22% to 1,09 billion. While those active on a monthly basis have reached $ 1,79 billion (+16%). Finally, the users that at least once a month log on to Facebook using smartphones and tablets, are results equal to 1.66 billion (+20%).

The social network is focusing for several months on the video, also to take advantage of a market of television advertising that only in the United States is worth us $ 70 billion, on the product Facebook Live and on the monetization of the family applications such as WhatsApp, Messenger and Instagram. Despite the good third quarter, with the title Facebook has registered a sharp decline of 7% in the after hours, in the wake of the decision to stop showing users more ads promotional to support the rise in revenues.

The market is focused on the number of advertisements within the News Feed that will be “a factor less significant in the growth of revenues after the first half of 2017,” explained the chief financial officer, Dave Wehner, in a conference call to comment of the accounts. Accordingly, the group of Menlo Park expects that the pace of expansion of the advertising revenue “declines significantly” because it will be less one of the three main sources of the expansion of Facebook. The other is the growth of users and the time users spend on the social network.

Zuckerberg then explained that, according to him, people will share your content is always less via text messages, and increasingly via the camera. Here’s why Facebook wants to make it easier for you to create the video. For this it is testing a version of its app that puts the chamber close to the News Feed and features that include video or camera for Messenger. In the next few months, guaranteed, test “messaging tools” camera.