Facebook and Twitter increase their profits in the last quarter of 2014

"This has been a good quarter with strong results," said Mark Zuckerberg, Facebook founder and CEO. "We continue to focus on serving our community well and continue to invest in connecting the world over the next decade."

Aύξηση εσόδων για Facebook και Twitter

Facebook reported a better-than-expected 59 percent jump in third-quarter revenue and a solid gain in its user base that's already the world's largest social media community. The company is considered a pioneer in mobile advertising, outshining rivals like Twitter Inc, which are struggling to sustain user engagement and growth. Mobile ads represented two-thirds of Facebook's advertising revenue in the third quarter, and the company said that the average price of its ads more than tripled year-on-year.
Facebook's total number of monthly users reached 1.35 billion in the third quarter, with 64 percent of its users accessing the service every day.

Facebook's total number of monthly users reached 1.35 billion in the third quarter, with 64 percent of its users accessing the service every day.

Facebook said revenue in the three months ended Sept. 30 totaled $3.2 billion, up 59 percent from $2.02 billion in the year-ago period. Analysts polled by Thomson Reuters I/B/E/S were looking for revenue of $3.12 billion on average.

Facebook declined to provide any estimates for its expected pace of revenue growth in 2015, adding to investor worries.

 

Facebook and Twitter increase their profits in the last quarter of 2014

"We had another very strong financial quarter" said Dick Costolo, CEO of Twitter. "I'm confident in our ability to build the largest daily audience in the world, over time, by strengthening the core, reducing barriers to consumption and building new apps and services."

Twitter Inc posted a disappointing 7 percent slide in a closely watched measure of engagement even though its user base grew 23 percent in the third quarter, triggering a more than 9 percent decline in its stock.  Expectations had run high for Twitter since the messaging service, which for years had fought to revive growth in users, surprised Wall Street in the second quarter by signing up 24 percent more people globally.

The company reported monthly active users, an important metric scrutinized by investors who worry that Twitter's growth has peaked, rose 23 percent to 284 million in the quarter.

The messaging service said revenue more than doubled to $361 million in the third quarter, beating an average forecast for $351.4 million. But it projected sales of $440 million to $450 million in the holiday quarter, versus expectations for around $448.8 million. The company reported a non-GAAP profit a penny per share, versus a 13 cent loss a year earlier, in line with expectations. Shares of the company slid 9.1 percent to $44.17 after closing at $48.56 on the New York Stock Exchange.