Facebook's User Engagement and Growth Dip
Facebook reported a slower-than-expected growth in daily active users in the latest quarter and said changes made to the News Feed reduced the time spent by users by about 50 million hours every day.
The social network said it had 1.4 billion daily active users in the quarter.
Facebook had warned earlier this month that user engagement would take a hit in the near term from attempts to tweak its flagship News Feed feature.
The company also plans to highlight "trustworthy" news.
"Our focus in 2018 is making sure Facebook isn't just fun, but also good for people's well-being and for society. We're doing this by encouraging meaningful connections between people rather than passive consumption of content. Already last quarter, we made changes to show fewer viral videos to make sure people's time is well spent. In total, we made changes that reduced time spent on Facebook by roughly 50 million hours every day. By focusing on meaningful connections, our community and business will be stronger over the long term," said Facebook's Chief Executive Officer Mark Zuckerberg. "Already last quarter, we made changes to show fewer viral videos to make sure people's time is well spent," Zuckerberg added.
Net income attributable to Facebook shareholders rose to $4.27 billion, or $1.44 per share, in the fourth quarter ended Dec. 31 from $3.56 billion, or $1.21 per share, a year earlier.
Excluding a tax provision, the company earned $2.21 per share.
Fourth-quarter revenue rose to $12.97 billion, demonstrating dominance in mobile advertising. Full-year revenue was also up 47 percent at $40.65 billion.
Total advertising revenue was $12.78 billion.
Mobile ad revenue accounted for 89 percent of the total ad sales, up from 84 percent a year earlier.