Even the mighty miss on revenue – but Facebook is still raking it in per user.
Facebook reported $13.73 billion in revenue for the third quarter on Tuesday, $40 million under what analysts were expecting and Facebook’s second earnings miss in a row.
But Facebook is now making $27.61 per user, compared with $21.20 a year ago, so investors are happy to forgive.
And despite the minor miss, Facebook’s revenue is up 33% year over year, with mobile making up $12.5 billion of the overall.
It’s the same story on the usage front.
Daily active users were 1.49 billion for September, a 9% YoY increase, slightly lower than the 1.51 billion estimate, while monthly active users clocked in at 2.27 billion, a 10% YoY uptick, but just under the 2.29 billion Wall Street was expecting.
But more than 2.6 billion people use either Instagram, Messenger, WhatsApp or the core app every day, and over 2 billion people use at least one of those services every day.
Good news for Facebook, right?
A 33% revenue boost and a growing active user base in the billions would represent a stellar quarter for any other company.
But Facebook is starting to show signs of stagnation and deceleration. In the United States and Canada, Facebook’s most lucrative market, DAUs are flat quarter over quarter and year over year at 185 million.
The markets don’t seem to know what to do with Facebook’s earnings report. The company’s stock almost immediately dropped by around 5% in after-hours trading, yo-yoed back up to a 4% gain, almost immediately started to fall again to nearly 7% … before starting to recover.
More to come.
This post was syndicated from Ad Exchanger.