Facebook’s Revenue and Profit Rise Again, Despite Controversies

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Even as Facebook has grappled with one corporate embarrassment after another, it has remained a business powerhouse.

But on Wednesday, the social network encountered the perils of being an aging corporation: It reported its slowest growth ever.

Facebook’s revenue in the last three months of 2019 rose 25 percent from a year earlier to $21 billion, while profits jumped 7 percent to $7.3 billion, the Silicon Valley giant said. While the performance was robust, the revenue growth was down from 28 percent in the previous quarter, turning 2019 into a year when the company did not report sales growth above 30 percent in any quarter.

At almost 16 years old, Facebook has matured into a large organization that is increasingly grappling with the law of large numbers and decelerating growth rates. Wall Street investors, who are accustomed to Facebook’s being a rapid-growth company, sent its stock down more than 6 percent in after-hours trading.

The company also reported 2.89 billion regular users across its family of apps — including Instagram, WhatsApp, Messenger and Facebook’s core social network — up 9 percent from a year earlier.

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Sahred From Source link Technology