Facebook shares closed higher in the US Tuesday. However, after initially sinking following the release of its third-quarter earnings report, the stock is currently higher in out-of-hours activity. The social media platform reported growth in the number of daily users and profit, however, the gains were below market expectations.
Facebook shares ended the US Tuesday trading session 2.91% higher at $146.22. The stock then slumped after the release of the earnings report, before recovering to trade over 3% in the green, out-of-hours.
Facebook Q3 earnings
Facebook said Tuesday, that the average number of daily active users of its platform grew 9% from a year earlier to 1.49 billion, in September 2018. The number of monthly active users, meanwhile, increased 10% from a year earlier to an average of 2.27 billion, in September.
Net profits at the tech firm grew 9% to $5.137 billion in the third quarter of 2018, from $4.707 billion, in the same period a year earlier. Facebook’s ad revenues were up 33% to $13.5 billion in the third quarter, from $10.14 billion in Q3, 2017.
While the numbers showed continued growth, once again it was at a slower pace than had been forecast by market analysts.
“We had a solid quarter and our community and business continue to grow quickly,” Facebook CEO Mark Zuckerberg said in an earnings call with analysts.
“We continue to face increased safety and security threats. We have significantly improved our systems here, but we have more to do,” Zuckerberg added.
While Zuckerberg and the senior management team were positive about their third quarter performance, they also said that the pace of growth would continue to slow going into 2019. This is expected to be due to slower user growth and also as the tech giant invests further in superior security tech.
“On the Facebook app overall, what we see is that we are generally stable; although we may be close to saturated in developed countries while we continue to grow very quickly – grow quickly in developing countries,” Zuckerberg told analysts on the call.