Thursday, April 23, 2015

Facebook: profits down, but unbridled growth – BBC

Since the end of December, the main application of leading social network has gained an equivalent number of monthly users to the French population. Sales, constituted 94% of advertising revenue, jumped 42% in one year.

The appreciation of the dollar during the first quarter began the rise of Facebook. It could not be otherwise: the company generates more than half of its business outside the United States. The leading social network nevertheless continued to spray the growth records. Sales, constituted 94% of advertising revenue, for example, have jumped 42% last year. Nevertheless, the increase would have been 49% if the rise of the dollar had not come devalue part of its revenue.

The most discerning punters note that for the first time since 2012, Facebook does not achieve the earnings forecasts of analysts. Quarterly profits fell by the network 20% to 512 million, for a turnover of 3.54 billion. Sheryl Sandberg in the eyes of the decline in profits is not so serious, “If we continue to grow if we continue to grow in advertising, if we improve the number of our users and their level of commitment is the most important thing we can do, “sums up the CEO of the firm in Menlo Park (California) focused on the medium and long term.

936 million users check their page every day

The publication of results from Facebook Wednesday evening was an opportunity for the founder Mark Zuckerberg and his team to give a final score on the fabulous progress of a single company in the world. Thus the number of monthly active users of its main application now reached 1.44 billion. This represents a gain compared to the end of December almost equivalent to the population of France.

Today 73% of our revenues are generated from mobile phones: it’s another feat, as this proportion was only 59% last year. But what is likely to attract more advertisers, is the continued growth in the number of daily users: they are now 936 million to check their Facebook page every day, 17% more than in March 2014 .

Advertisers are facinés by targeting Facebook guarantees their messages, taking into account the tastes and habits that network users agree to disclose them. Also significant and costly efforts of Mark Zuckerberg to develop video applications bear fruit: 4 billion videos are viewed every day. This figure ve continue to increase and facilitate the shift towards a portion of Facebook advertising budgets devoted to traditional TV campaigns. To ensure this development and prepare for the future, Facebook continues to hire massively.



Hiring still massive

The number of social network and have 48% off for a year. The company now employs more than 10,000 people. Recruitments concern all of its activities, but research and development are priviliégiés said Dave Wehner, Chief Financial Officer. This budget has actually more than doubled in a year. The increase reflects investments in virtual reality and the extension of internet access throughout the globe.

Last year, Facebook had panicked some shareholders evoking a probable explosion of spending by 75% in 2015. In 2014, the increase was 83%. The figure for the current year is now revised downwards, between 55 and 65%. The pace remains significant and higher than short-term earnings growth of the company.

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