That’s a huge and probably scary number for Facebook its goal, after all, is to get users to use more Facebook and see more Facebook ads but business CEO Mark Zuckerberg has been predicting this consequence would come, and he’s established that in the long run, it’ll be helpful. The company published the stat today while announcing earnings for its fourth quarter of 2017.
Declined usage is giving elsewhere, too. Though Facebook saw a 14 percent quarter-over-quarter improvement in daily and monthly active users, it actually collapsed from 185 million to 184 million daily users in the US and Canada and waited at a flat 239 million for repeated users. And while usage improved in all other measured regions, growth was delayed than it’s been since 2015, as Recode points out.
Zuckerberg informed about the diminished usage earlier this month, saying it was a presumed effect of the changes being made. “But I also expect the time you do spend on Facebook will be more valuable,” he wrote. “And if we do the right thing, I believe that will be good for our organization and our business over the long term too.” Zuckerberg said changes began to be made in 2017, but that it will “take months” for it to be seen over all of the company’s products.
“In 2018, we’re focused on producing sure Facebook isn’t just fun to use, but also good for people’s well-being and for society,” he said in an announcement this afternoon. “We’re doing this by encouraging significant connections between people rather than passive consumption of content … By focusing on important connections, our community and business will be determined over the long term.”
In November, Facebook said its delegation to “preventing abuse on our platforms” would “impact our profitability,” and it may previously be feeling that to an extent. For its final quarter of 2017, Facebook brought in $13 billion in tax and $4.3 billion in profit, up from $8.8 billion and $3.6 billion this time last year. But even though it grew, profits still missed investors’ expectation, beginning only 19 percent on a per share basis preferably of closer to the 60 percent that investors were watching for, according to forecasts described by The Wall Street Journal.
Source: ReCode, The Wall Street Journal
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