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Facebook Q4 revenue $12.97 billion

Staff Writer |
Facebook reported financial results for the fourth quarter ended December 31, 2017.

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The company said it had made changes, including a crackdown on viral videos, that reduced the amount of time users spent on its social network.

Facebook now has 1.4 billion daily users, up 2.18% compared to growing 3.8% to 1.37 billion users in Q3. That’s 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 on Facebook by roughly 50 million hours every day.” That equates to 2.14 minutes per daily user per day.

Facebook reached $12.97 billion in revenue with $2.21 adjusted GAAP earnings per share if you don’t count a massive tax it had to pay on overseas cash that translated into a $0.77 reduction in EPS.

Facebook’s 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.

Average revenue per user climbed to $6.18, up 27% from a year ago. Average revenue was up 47% year-over-year, even though Facebook has been warning investors that it’s running out of space in the News Feed to put ads.

Facebook raked in a record $4.26 billion in profit, down from $4.7 billion the previous quarter due to that big tax. Facebook’s share price was down a steep 4% in after-hours trading.

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