Quarterly revenue as well as user growth at Facebook upset investors amidst a difficult year for the social media giant that has faced data misuse, election meddling and misinformation on its platform
Facebook’s total revenue was up 33% ending the quarter at $13.73 billion but came up short of expectations on Wall Street. User figures missed estimates as well, as monthly active users ended the quarter at 2.27 billion which was a 10% increase year over year.
At the same time, daily active users during a month averaged 1.48 billion, which was a year over year increase of 9%.
Analysts were expecting monthly users of 2.29 billion and daily users of 1.51 billion.
During trading on Tuesday, Facebook shares were up and down, but following the earnings call were up more than 4%.
Not all the news was bad for the social media giant. Earnings per share reached $1.76 which topped estimates on Wall Street.
The company added that it estimates more than 2.6 billion people use Facebook, Messenger, Instagram and WhatsApp each month. Over 2 billion people are using at least one of those apps each day.
An analyst with online research firm eMarketer said that Facebook’s revenue growth had a nice pace during the quarter in its important United States and Canada markets.
The report arrives following a second quarter that disappointed. Facebook said user growth slowed and expenses increased and at the time the CFO warned growth in sales might drop during the second six months of 2018, as new formats were prioritized such as the Stories feature, as well as offering more choices related to privacy.
The year thus far has been quite challenging for Facebook as it was hit with its largest security breach ever with close to 30 million email addresses and phone numbers of users being accessed by cyber attackers.
The company is continuing to struggle with the different privacy issues following the scandal involving Cambridge Analytica and the huge growth of disinformation.
Last week over 82 pages were taken down said Facebook that were groups and accounts that had been operated out of Iran but targeted U.S. and UK residents prior to the upcoming US midterm elections.