Facebook delivers better-than-expected revenue, with growth in advertising and global user base

Facebook delivered better-than-projected third-quarter sales and steady user growth, proving that its business can endure increasing regulatory scrutiny and criticism over its immense reach and influence.

The social-media giant’s monthly global user base grew by 35 million – including 3 million new users in the lucrative North American market, which had looked like it reached a plateau in recent years. Facebook added as many new users in the US and Canada last quarter as it did the previous five quarters combined.

“We are building products that people want to use all over the world,” Facebook Chief Operating Officer Sheryl Sandberg said in an interview with Bloomberg Television late Wednesday following the company’s earnings report. “Importantly, the Facebook core app is growing, including in the United States.”

That user growth came even as regulators and lawmakers began to step up probes into the world’s largest social network, including antitrust investigations by the US Federal Trade Commission, the Department of Justice and a broad group of US state attorneys general. The inquiries haven’t scared off advertisers either, and third-quarter sales rose 29 per cent to US$17.7 billion, the company’s highest ever for any single quarter.

Shares jumped about 5 per cent in late trading following the news.

On an earnings call with analysts, Facebook executives pointed to ads in Stories, where posts disappear after 24 hours, as a key growth area. They also mentioned ads in the Explore section of its Instagram photo-sharing app, where users go to discover posts from people they don’t follow. Research firm EMarketer estimates Instagram will generate more than US$15 billion in ad revenue this year, up from US$9.1 billion in 2018, though Facebook doesn’t break out results from that business.