Facebook revealed a low rate of time spent on the site as the number of users in the United States and Canada declined due to changes made to the news display style (News Feed).
According to the BBC, these changes came amid a review of its advertising business and its role in political campaigns and broader social impact. But the company’s president and founder Mark Zuckerberg said the changes help the company in the long term. Zuckerberg called the 2017 “a strong year, but it was also difficult.”
Revenue rose 47 percent to more than $ 40 billion last year, while profits rose 56 per cent to $ 16 billion. The profits came despite the payment of $ 2.3 billion in unanticipated due taxes due to the new US Tax Code, which included a one-time tax on overseas profits. The source of the figures confirmed the strength of the company’s financial position, despite the criticism it faces. Zuckerberg said the company was making changes to ensure that users’ time on the social network was “more targeted.”
He said the changes, which include offering fewer videos on the Internet, have already reduced time on Facebook by about 5 percent or nearly 50 million hours a day. Facebook also said its users’ growth had cooled slightly from the impact of the latest update. The company revealed an average of 1.4 billion active users a day on its website, and about 2.13 billion active users per month in December. These figures were about 14 per cent higher than in December 2016, but increased by 16 per cent in September compared to the same month in 2016.
In the United States and Canada, these changes resulted in fewer than 700,000 users per day. Dave Lee, the BBC’s North American technology correspondent, says politicians, academics and even former executives have come together to tell Facebook about the mistake, but Mark Zuckerberg always trusts only in his own data.
So these changes in news feed, above all, are the result of what Facebook engineers see for themselves. Zuckerberg’s argument (very convincing) is that the company’s long-term prosperity will be at risk if the news feed is not fixed, it is not because of Russian propaganda or phantom news, but only because its use will not be fun or useful.
Zuckerberg, 33, warns investors again that it will take time to address the news feed, so it makes a better place for you and for me, and eventually, hopefully it will be better for advertisers and companies.
What we need to look for is the patience of investors with him. Facebook overtook all expectations, over the past two years, and did this again today, even with warnings.
“We are focusing, in 2018, on ensuring that Facebook is not only for fun, but also a good tool for the welfare of people and society,” Zuckerberg said in a statement. “By focusing on meaningful relationships, our community and business will be stronger in the long term.” Daniel Eveis, analyst at GPH Insights, said the company’s financial results were “strong” and described Facebook’s strategy as “timely treatment.”
“We believe that this strategy will drive towards higher pricing for long-term trends for Facebook, a move that Zuckerberg and Co. are looking for.”
The source of the image pressure Facebook is under pressure, as US lawmakers are investigating the alleged use of social media network in advertising. Some have also urged the company to withdraw the application targeting young children.
Earlier, Zuckerberg pledged that the company would invest more in security among other initiatives, warning that those moves could affect profitability. Facebook shares fell more than 4 percent in trading after hours, despite strong growth. The company reported fourth-quarter revenue of $ 13 billion, up 47 percent from the same period in 2016. The profit was $ 4.3 billion, up 20 percent from a year earlier, after tax. Facebook said it expects to pay the actual tax rate of 23 per cent over 2017, slightly higher than last year.