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Facebook’s 2014 Q3 Earning Call: Shows You Can’t Please Everybody

Facebook (NASDAQ:FB) held its 2014 Q3 earnings call on Tuesday and although the social media giant's numbers were impressive, Wall Street was not exactly thrilled.

Facebook's growth slowed from 3.125 percent last quarter to 2.27 percent this quarter. In after-hours trading, Facebook's stock was down 9.76 percent. Additionally, Facebook broke out the financials of its $22 billion WhatsApp acquisition for the first time, and they were a little disappointing. WhatsApp brought in just $15 million in revenue in the first half of 2014 despite having 600 million users.

Ouch!

And, what about the teen metric?

Mum was the word, the world's social connector refused to break out any data about usage levels of teens. Anecdotal evidence says that teens are abandoning Facebook for apps like Snapchat. When asked about engagement for different demographics, Facebook's CFO David Wehner said the company had nothing to report on specific cohorts of users.

So what's the good news?

Facebook's billion user march! Each month, 1.35 billion people log into Facebook; 864 million are daily active users, which is up from 829 million in the second quarter of 2014. If you prefer percentages as a metric, 64% of monthly active users log on to Facebook every day.

Revenues? How about $3.2b in total revenue and $766 million in free cash flow in the third quarter.

Advertising. Facebook turned in a 247% increase in ad prices.

If you are a company without a mobile strategy, you better get moving.

Over a billion users, 1.12 billion users to be exact, use Facebook mobile each month which is up 250million since last year and 703 million use Facebook mobile each day, a 40% growth year over year. Mobile is 66% of ad revenue up from 49% during the same time last year. If these numbers about mobile don't move you, chances are your business could go the way of the Dodo bird.

Advertisements Coming to Snapchat

It's inevitable.

The advertising domino effect has hit another social media platform, Snapchat.

The company recently announced on its blog that ads will begin appearing in "Recent Updates."

"An advertisement will appear in your Recent Updates from time to time, and you can choose if you want to watch it. No biggie. It goes away after you view it or within 24 hours, just like Stories," the company wrote in a blog post.

No need to worry about ads appearing in your snaps or chats or that creepy feeling of being followed by advertisements.

"That would be totally rude," the post reassures. "We want to see if we can deliver an experience that's fun and informative, the way ads used to be, before they got creepy and targeted. It's nice when all of the brilliant creative minds out there get our attention with terrific content."

Unclear why Snapchat and some of your other favorite social media platforms are introducing ads? The answer should be apparent, if not, Snapchat was straight to the point.

"Understandably, a lot of folks want to know why we're introducing advertisements to our service. The answer is probably unsurprising — we need to make money."

Social Media Traffic to News Sites Has Increased 57%

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  • Published in 411TV
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