Facebook Hits Ceiling

On Wednesday, the social network reported hitting 1.94 billion monthly users as of the end of the March quarter. That’s up from 1.86 billion in the previous quarter and 1.65 billion in the same quarter a year earlier.

What’s more: Facebook now has 1.28 billion people who use its services every single day, up from 18% year-over-year.

Facebook’s unparalleled audience gives it an “insurmountable competitive advantage,” according to Michael Pachter, an analyst with Wedbush.

But some cracks are beginning to show.

Facebook’s posted $8 billion in revenue for the quarter, beating Wall Street estimates. However, its sales growth is beginning to slow down.

Facebook’s total sales for the quarter were up 49% from the same period a year earlier, breaking its streak of five consecutive quarters of growing sales at 50% or more.

David Wehner, Facebook’s CFO, said in November the company expected to see its ad sales growth rate “come down meaningfully” in 2017. The reason: Facebook is hitting the ceiling for how many ads it can shove in front of users.

Wehner reiterated that point on a conference call with analysts Wednesday.

Facebook stock fell 3% in after hours trading.

Analysts are now looking to other Facebook services like Instagram, Messenger and WhatsApp to pick up the slack as Facebook’s main business matures. Facebook does not break out sales for the other services.

WhatsApp and Messenger each have more than one billion users and Instagram now has more than 700 million users. WhatsApp’s Status (a feature that copied Snapchat) reached 175 million daily active users, while Instagram Stories recently became more popular than Snapchat.

In recent months, Facebook has also faced criticism for its handling of ad metrics, fake news and troubling videos of murder and suicide shared on the platform.

Earlier on Wednesday, Facebook announced plans to add 3,000 reviewers to help monitor and combat violent videos.

On the earnings call, CEO Mark Zuckerberg said AI tools will get better over time, but it will take a “period of years” to reach the quality level that Facebook wants.

“It’s not just about getting content off of Facebook,” Zuckerberg said. He pointed to a recent case where Facebook worked with law enforcement to help save someone’s life who was live streaming their suicide on Facebook Live.

Executives also addressed a report about gender bias at Facebook, which alleged that alleged code written by women was rejected more often than code written by men.

“This is an issue I take very seriously,” COO Sheryl Sandberg said on the call, adding that the study was conducted by a former employee with “incomplete data.”

Facebook conducted its own research using full data and found that the rates at which code was sent back coordinated with level not gender. Sandberg said there are more male engineers at the senior level and in the industry in general.

About the author

Chris “Fosdog” Foster is the Pack Leader of FosDog Marketing. Foster is a local, experienced, affordable website designer and marketing expert. A life long Michigan resident with a passion for helping small businesses since 2006. He has worked for the large, impersonal marketing companies and found them severely lacking in personal touch and customer service. As of 2012, he knew, as an entrepreneur, he could do it better for the small business person who wants to stay competitive with the “big dogs”.

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Deb Watkins
Deb Watkins
19:29 23 May 20
This was our first project with FosDog and it's been a great experience. I was nervous about doing all the "work"... associated with a new webpage but Chris was very supportive and it was so much easier than I ever imagined. Throughout the process he was professional, listened to my concerns and created a terrific product. We love the new site - it is just terrific and I hope to be working with FosDog on future projects.read more
Patti Kommel
Patti Kommel
01:09 15 May 20
FosDog has developed my website for the last few years, periodically checking in and updating when needed. Monitors my... systems for me and always helps it look great—the pay feature that he added with my credit card processing company has been fabulous especially in this new world. Thanks FosDog for making me always look great.read more
Lee Fiema
Lee Fiema
00:39 15 May 20
Working with FosDog has always been a great experience with my company, Aquarium Shine.  Chris recognizes our... marketing strategies to outline those ideas with the website and social media sites he facilitates for us.  This company is an excellent source for design thinking than creating thoughts for our potential clients to see.  Thanks, Chris for the many years of work done for us!read more
Aja Botanicals
Aja Botanicals
16:45 14 May 20
Chris did a fantastic job setting up our ECommerce website. He’s continued to help with updates and management. He is... always available to answer my questions and provides an excellent service at a fair price. If you need a new website or just a refresh of an existing site Fosdog is your best choice.read more
Ryan Dixon
Ryan Dixon
13:47 14 May 20
Chris has been dealing with my website for a 3 years now. It has been a great experience and having a professional... website is so important for being a validated professional in the trades industry. Thank you so much for your quick response time and great service Chris.read more
Local Services
Local Services
15:13 16 Oct 19
So happy to have found Chris. Really responsive and easy to work with. Did a great job on our website needs and made... the process simple and easy. His sense of urgency to projects is top notch and he makes it feel like your working with family. Strongly recommend do yourself a favor and call Fosdog.read more
Anthony Provenzola
Anthony Provenzola
11:14 03 Aug 19
Good food and a cool setting
Bryon Scott
Bryon Scott
14:54 01 Apr 19
As a social media service provider, it's essential to have a go-to website company to refer our clients to. Fosdog... marketing is just that company! Quality clean WordPress based websites available at a great price with a short turn-around. Trust Fosdog!read more
Bryon Scott
Bryon Scott
14:52 01 Apr 19
Fosdog is our go-to website builder! With a fantastic knowledge of WordPress, Fosdog is able to make clean, modern and... most importantly mobile-friendly websites at a fair price with a very quick turn-around.read more
Corbin Bell
Corbin Bell
12:10 28 Mar 19
FosDog is great! Nice, clean interactive WordPress sites. Easy to work with and has great support!
Joanne Giardini-Russell
Joanne Giardini-Russell
21:30 06 Mar 19
FosDog has been handling our website (that he created) since opening day for us. We get client feedback often about the... looks of and the ease in using our site. When I need a tweak? He's got it down. Thanks for making our busy world easy for us and our clients, FosDog :)read more
Maria Sorrentino
Maria Sorrentino
21:13 12 Mar 18
Chris is awesome! We needed a new site all from scratch, he exceeded our expectations. We love to show off our new... website. Chris is very easy to work with, we can make changes and add things easily. We couldn't be happier!read more
Michael Sher
Michael Sher
13:28 25 Oct 17
I've worked with Chris Foster for over 2 1/2 years. He is responsive, honest, creative and hard working. He is never... afraid to take on a challenging project and will bring in additional talent if need to be to deliver a great product. Thanks Chris! Mike Sher, Max Broock Realtorsread more
Fred Dawson
Fred Dawson
21:04 27 Jul 17
Mr. Foster did a great job on my website. He took the time to really understand my business so that he could build me... a better and more tailored website. It's very professional and works great even on my customer's smart phones.read more
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