Facebook reports fourth quarter 2019 results, costs expanded due to strengthened security to restore trust


Kon Karampelas

Facebook reports fourth quarter 2019 results (October to December). Facebook has recorded a 34% increase in expenses compared to the same period of the previous year due to the increased costs of content expansion and security enhancement, and the stock price has been reported to have fallen by up to 7% due to the effect.

Facebook Reports Fourth Quarter and Full Year 2019 Results
(PDF) https://s21.q4cdn.com/399680738/files/doc_financials/2019/q4/FB-12.31.2019-Exhibit-99.1-r61_final.pdf

Facebook stock falls after showing 51% rise in expenses

According to Facebook's Q4 2019 earnings report, sales in the same quarter were $ 21.80 billion, an increase of 20% year-on-year. Sales exceeded expectations ($ 20.89 billion). Advertising revenues accounted for $ 20,736 million (approximately 2,260 billion yen) of sales, and Facebook's Sheryl Sandberg COO said, `` Advertisers using the company's advertising services in the fourth quarter of 2019 Number has exceeded 8 million. '

Expenses, on the other hand, have risen significantly to 34.22 billion dollars (about 1.3 trillion yen), a 34% increase over the same period last year, which is due to Facebook's promotion of content expansion and security enhancement. It is a cost. Higher expenses reduced operating margin to 46% from 46% a year ago.

In addition, over the entire 2019, Facebook's expenses are 51.67 billion dollars (about 5.1 trillion yen) of 51% compared to the previous year, and Facebook has been working on service improvement throughout the year I can tell. The operating margin fell to 45% in 2018 and 34% in 2019.


Tim Bennett

Facebook has an average of 1.66 billion daily active users in December 2019, an increase of 9% over the same period last year. The number of monthly active users was 2.5 billion in December 2019, up 8% from the same period last year. In addition, the average sales per user is $ 8.52. If you include users of services other than Facebook, such as Instagram, Messenger, and WhatsApp, the number of users of the Facebook family seems to exceed 2.89 billion.

'We will continue to focus on building services that can help keep people connected,' said Mark Zuckerberg, CEO of Facebook. In a meeting with analysts, Zuckerberg said, 'Our goal for the next ten years is not to be liked, but to be understood. It's important for Facebook to regain lost trust.

One of the big triggers that lost Facebook's trust was the case where 50 million user data was misused . Following this, Facebook has been ordered by the Federal Trade Commission to pay a fine of 540 billion yen, but according to the company's David Wener CFO, Facebook is still paying the fine because it is pending court approval. It is not.

by Prateek Katyal

Apple and Microsoft also reported results for October-December 2019.

in Note, Posted by logu_ii