Wednesday, October 29, 2014
Facebook Warns of Slower Growth Ahead
Facebook reported a 58% year-on-year increase in revenue in the third quarter to 3.2 billion US dollars, excluding the impact of foreign exchange rates, driven by a sharp increase in mobile advertising. The social network forecast that its revenue will grow between 40% and 47% in the fourth quarter. In the third quarter, daily active users climbed 19% year-on-year to 864 million - about the same growth rate as in the previous quarter.
The social network said mobile advertising revenue represented 66% of advertising revenue for the third quarter of 2014, up from 49% of advertising revenue in the third quarter of 2013. Payments and other non-advertising services generated 246 million dollars in the quarter, a 13% increase from the same quarter last year.
On a call with analysts, Mark Zuckerberg, Facebook's CEO, said: "Over a five-year time frame, we have a number of services which we think are well on their way to reaching one billion people: WhatsApp, Instagram and search are a number of them. And once we get to that scale, then we think that they will start to become meaningful businesses in their own right. And I think that the right way to think about that, as I've tried to say repeatedly on these calls, is not that we're going to try to monetize them very aggressively in the next year or two, because I really think for each of those categories, the right strategy is to first focus on connecting one billion plus people in reaching the full potential before very aggressively turning them into businesses." source: Facebook statements
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