Facebook has reported a first-quarter revenue that was lighter than anticipated. The report shows Facebook’s total costs rising, but an overall declining profit.
Facebook’s first-quarter earning release for 2015 showed that its total cost and expenses rose 83 per cent to US$2.61 billion. Research and development spending doubled to $1.06 billion, and Facebook’s operating margin fell to 26 per cent from 43 per cent.
According to USA Today, analysts had predicted that Facebook’s revenue would hit $3.56 billion. The earning release should that Facebook had only reported revenue of $3.54 billion. With increasing spending, net income fell 20 per cent to US$512 million.
There was also a 4 per cent drop in desktop ads and a 5 per cent drop in payments and ‘other’ fees, which includes revenue made from Facebook’s in-house games.
Facebook, which generates over half its revenue outside of the US, argued that fluctuations in foreign currency would have had an effect on the earnings. The release said that: “Excluding the impact of year-over-year changes in foreign exchange rates, revenue would have increased by 49 per cent.” An increase in Facebook employees, to 10,082 employees, and heavy spending on data centres were also blamed for the lacklustre first-quarter revenue.
“In order to continue to beat estimates and continue to increase growth, they have to come up with something new, and I don’t know that they’ve done anything new in a little while,” Adam Foroughi, CEO of marketing platform AppLovin told International Business Times.
“That’s what you’re seeing: a very large business grow steadily, but it’s not going to be as easy for that to blow out analysts’ estimates anymore.”
But it’s not all tears and fears for Facebook, users and mobile advertising are all on the increase from 2014 first-quarter reports. Facebook had an average of 936 million daily active users in March 2015. Facebook had 789 million daily active users on mobile devices in March. Monthly active users were 1.44 billion as of the end of March. On mobile, Facebook had 1.25 billion people monthly users.
Facebook’s mobile advertising made up 73 per cent of the company’s total advertising revenue, up from 59 per cent in 2014.
Facebook chief operating officer Sheryl Sandberg, told USA Today, that 75 per cent of video views on Facebook were taking places on mobile devices. With Facebook users now watching more than 4 billion videos on Facebook every day.
Mark Zuckerberg, Facebook founder and CEO, said in the report that: “This was a strong start to the year, we continue to focus on serving our community and connecting the world.”
Please login with linkedin to commentOnline ads
Verizon Media’s talent program has come to an end for the third year, closing with a hybrid pitch-off event for Musicians Making A Difference (MMAD). The Verizon Media Academy class of 2021, made up of 44 emerging leaders from across Australia and New Zealand media, advertising and marketing industry, were given just one hour to […]
Social purpose organisation UnLtd’s Big Games competition has raised a combined $85,000 for children and young people at risk. Running over five weeks, the competition involved 32 teams from across the advertising, marketing and media industries battling it out virtually for a chance to qualify for the Rocket League final. The tournament culminated in a […]
Stan has announced that the Stan Original Film Transfusion commenced filming in Sydney earlier this week and will premiere on Stan in 2022. Transfusion is a taut, muscular thriller starring Sam Worthington (Avatar) as Ryan Logan, a former Special Forces operative, who is battling to cope with life after the loss of his wife and is thrust […]
According to a decade of data collected by iStock, Australian brands turned to imagery depicting outdated gender stereotypes during the pandemic. Tracking the keyword ‘women’, iStock by Getty Images found that in 2020, ANZ brands and businesses reverted to gender stereotypes. Images of mothers home-schooling were used at almost twice the rate of images of […]
Schwartz Media is congratulating Maddison Connaughton on her three years as editor of The Saturday Paper. Connaughton has decided to finish up her editorship this month. “It’s been an honour to edit the paper,” Connaughton said. “The Saturday Paper is one of the brightest voices in Australian media and I have been happy to see […]
Research from EdBbirdie using Spotify data has identified the most popular songs to study to. After analysing thousands of studying and homework playlists on Spotify, American singer Olivia Rodrigo’s ‘drivers license’ came out as top song to study to. It featured on 48 study playlists, while other top songs included ‘Ophelia’ by The Lumineers, ‘Falling’ […]
Dayna Stewart is the Business Director – Digital Marketing, Media & Creative Services at The Nudge Group. Here, she discusses the challenges that come with building a successful marketing team when working remotely. Before COVID-19 changed the way businesses work, most marketing teams spent their days together in a meeting room collaborating on the next […]
The line-up for the 2021 iHeartRadio Music Festival has been announced as the legendary event returns live in Las Vegas in September. This year, the epic two-day lineup for the iHeartRadio Music Festival main stage will feature performances by Billie Eilish, Cheap Trick, Coldplay, Dua Lipa, Florida Georgia Line, Journey, Khalid, Lil Baby, Maroon 5, Nelly, […]
Shop! ANZ is calling on shopper and retail marketing professionals from all retail related disciplines to participate in the first ANZ Shopper and Retail Marketing Industry Survey in four years. This important research provides a guide of where the retail marketing industry in Australia and New Zealand has come from and what is anticipated to […]