Facebook, Inc. Common Stock (NASDAQ: FB) stock rose over 6.3% on October 31st, 2018 (as of 10:23 AM GMT-4; Source: Google finance). The firm’s bottom line surpassed the views of Wall Street analysts as the social media giant continued to fend off the impact of the data harvesting scandal by Cambridge Analytica earlier this year. There are now more than 2.6 billion people using Facebook, WhatsApp, Instagram or Messenger each month, up from around 2.5 billion last quarter. But now, on average, more than 2 billion people use at least one of the services every day.
FB in the third quarter of FY 18 has reported the adjusted earnings per share of $1.76, beating the analysts’ estimates for the adjusted earnings per share of $1.47, according to figures compiled by Refinitiv. The company had reported the adjusted revenue growth of 33 percent to $13.73 billion in the third quarter of FY 18, missing the analysts’ estimates for revenue of $13.78 billion. Operating income was $5.8 billion representing a 42% operating margin. Net income was $5.1 billion and Capital expenditures were $3.3 billion
Further, during the quarter, the company’s growth was broad-based across regions, marketer segments and verticals. Mobile ad revenue grew 40% to $12.5 billion making up approximately 92% of our total ad revenue. Q3 total ad revenue was $13.5 billion up 33 % or 35% on a constant currency basis. In terms of regional ad growth, Asia-Pacific was strongest at 38% followed by Europe and North America at 34% and 33% respectively.
Rest of World ad growth trailed at 26% due to both currency weakness and economic challenges in Latin America. Mobile ad revenue was $12.5 billion up 40% and represented approximately 92% of total ad revenue. In Q3, the average price per ad increased 7% and the number of ad impressions served across our services increased 25% driven primarily by feed ads on Instagram and Facebook. Although these ads currently monetize at lower rates compared to feed ads. Payments and other fees revenue was $188 million up 1%.
Facebook had a total of 1.49 billion daily active users on average in September, which is an increase of 9% from the prior year quarter, but fell short of the consensus of 1.51 billion. Monthly active users climbed 10% year over year to 2.27 billion at the end of September but missed the consensus of 2.29 billion.