Even if Libra died, Facebook will not stop entering the financial industry.
Editor’s note: This article is from snowball, author Li Yubo.
After Internet advertisers Google, Twitter, snap, and earnings were all less than expected, Facebook handed over a copy of its own answer.
Facebook’s profit for the first three quarters of the fiscal year was $11.136 billion, down 26.68% year-on-year; operating income was $496.15 billion, up 27.47% year-on-year. The decline in profit was mainly due to the additional reconciliation with Q1 and Q2 and the US Federal Trade Commission (FTC) settlement. $5 billion in legal fees ($5 billion fine settlement agreement, $3 billion in legal expenses during Q1, $2 billion in legal expenses during Q2)
2019Q3FB revenue increased 29% year-on-year to US$17.65 billion, compared with US$13.539 billion in the same period last year. Net profit increased 19% year-on-year to US$6.091 billion, compared with US$5.137 billion in the same period last year. Operating profit margin was 41%, compared with 42% in the same period last year. The profit margin continues to remain within the normal range.
(1) Focus on user situation
2019Q3 Facebook platform daily growth of 9% to 1.62 billion, month-on-month growth of 1.6% to 2.414 billion, during which European and American users regained growth, the user base in Europe increased from 286 million active users in the previous quarter to 288 million . In the US and Canada, the number of users increased from 187 million in the previous quarter to 189 million.
Disclosed about 2.8 billion people based on the conference call using at least monthly subscriptions using Facebook, Instagram, WhatsApp or Messenger. About 2.2 billion people use Facebook, Instagram, Wha every monthtsApp or Messenger, and about 140 million companies use our services every month to develop, work, and communicate.
The user situation of Q3 is relatively bright, and in the case of such a high base, it continues to maintain steady growth.
(2)Ads
Q3 advertising revenue was 17.383 billion US dollars, up 28% year-on-year, of which mobile advertising revenue accounted for 94%, compared with 92% in the same period last year. Follow-up needs to continue to track the global ARPU situation disclosed.
Facebook has more than 7 million advertisers and 3 million ads across Facebook, Instagram and MessengerStories. According to the conference call disclosure FacebookNewsfeeds (currently still in the promotion stage) this quarter is very eye-catching, known as the main driver, while FacebookMarketplace is also remarkable.
The previous Q2 season also mentioned FacebookNewsfeeds. In addition, Instagram is slow to promote on shopping, and still mainly advertises, but the data shows that users on Instagram are very willing to shop.
The future worry is that in the United States, the vibrato can not keep users to maintain growth. At present, it has been slamming for a month or two. If it succeeds, it will eat Instagram and Facebook. not a problem.
(3) Total cost and expense slowdown
Facebook’s total cost and expenses for the third quarter were $10.467 billion, up 32% from $7.946 billion in the same period last year. Facebook’s third quarter R&D spending was $3.548 billion, up from $2.657 billion in the same period last year;
As mentioned before, a series of public opinion crises and pressures caused by the privacy crisis since last year have directly led to the main departments of the company.The costs and costs of privacy protection, security and operational stability have increased dramatically. Obviously this situation is unlikely to continue, and even in the distant future, this expenditure may constitute a certain “moat.”
(4)Libra
There is no specific information about Libra in the earnings and conference calls.
Libra’s cryptocurrency project Libra has suffered from regulatory challenges and the withdrawal of founding members. Can Libra succeed? To tell the truth, it is too difficult to judge at this stage. In the face of such a complicated and highly uncertain new business, I personally did not give too much expectation. The originally planned plan for 2020 is probably delayed.
Instead, I am more concerned about the financial actions on WhatsApp. According to public information, Facebook has now increased its support for the mobile payment service WhatsAppPay. Previously, Facebook had pre-tested WhatsAppPay among 1 million users in India, and the market responded well.
After
, Facebook decided to continue to increase its investment in the project, and the biggest regulatory obstacle currently facing India is to store mobile payment related data in India. After the success of the Indian market, WhatsAppPay is likely to enter other countries or regions, and even in the future may also open payment functions in Messenger.
So I believe that even if Libra fails, $Facebook(FB)$ will not stop entering the financial industry.
This article Source: Snowball, Snowball is the leading investment exchange trading platform.