Facebook user growth fell during the last quarter in the U.S. and Canada but its daily active users grew; albeit at a slower pace than previous quarters…
As Facebook continues to make changes to its News Feed, users are responding in different ways. The social behemoth managed to reach $12.97 billion revenue (that is, not counting the massive tax hit it took abroad). However, it did exceed Wall Street expectations of $12.55 billion, reporting $1.44 EPS or earnings per share.
Facebook Q4 2017 Earnings Report Reveals Reduced Usage
The Facebook Q4 earnings report also reveals the social network grew to 1.4 billion daily active users, increasing by 2.18 percent. However, that’s a decrease from Q3, when it added 3.8 percent to reach 1.37 billion daily active users. This represents the single lowest quarter-over-quarter daily user growth percentage on record.
At least part of the overall reason for such mixed figures is the many changes to the News Feed. Surfacing fewer viral videos and placing more of an emphasis on posts from family and friends created a substantial impact. In fact, the time spent on the platform plunged by 50 million hours per day. This equates to 2.14 minutes per daily user, per day. Or, 5 percent of the total time spent on the network.
Facebook User Growth
Such News Feed changes probably caused significant behavior shifts in North America. For the first time ever, DAUs or daily active users in the United States and Canada declined by 700,000. What’s more the social site stayed flat at 239 million monthly users. Although usage grew in every other measured region, growth slowed the most since 2015.
For Q4 2017, Facebook recorded a profit of $4.3 billion. However these figures still missed Wall Street’s forecasts. It rose by 19 percent on a per-share basis, falling short of the estimated 60 percent.
Facebook’s total 2017 numbers recorded substantial increases, rising to $40.6 billion and $15.9 billion, from $27.6 billion and $10.2 billion in 2016, respectively.