Facebook expenses, revenues and user base are still growing
Facebook saw a significant increase in expenses last year. The tech giant has been under considerable pressure for some time because of, among other things, the distribution of fake news and scams through advertisements. The company spends a lot of money to tackle those problems.
Over the past year, profits have also increased to nearly $ 50 billion. Just like in recent years, Facebook earned by far the most money from advertisements. Of the $ 70.7 billion in revenue last year, only $ 1 billion came from other sources. Below the line, the company left 18.5 billion against 22.1 billion in 2018. In addition to sharply increased costs, Facebook also put more money aside for taxes.
Facebook’s user numbers were still rising. At the end of last year, 2.5 billion people made use of Facebook at least once a month, an increase of 8 percent on an annual basis. If we look at all the services of Facebook, such as Instagram, Facebook Messenger and Whatsapp, then it concerns 2.89 billion people. CEO Mark Zuckerberg spoke of a strong year.
The increased Facebook expenses caused concerns for investors. The stock fell sharply in the so-called aftermarket trade on Wall Street. This was also due to revenue growth in the fourth quarter. Revenues in that period grew by 25 percent compared to a year earlier, and that is the slowest pace in the company’s history. The quarterly turnover came to a record high with 21.1 billion dollars, driven by advertisements on Instagram and others.