Facebook Security
Auto Added by WPeMatico
Auto Added by WPeMatico
Facebook managed to beat Wall Street’s estimates in its Q4 earnings amidst a constant beat down in the press. Facebook hit 2.32 billion monthly users, up 2.2 perecent from 2.27 billion last quarter, speeding up its growth rate. Facebook climbed to 1.52 billion daily active users from 1.49 billion last quarter for a 2 percent growth rate that dwarfed last quarter’s 1.36 percent.
Facebook earned $16.91 billion off all those users with a $2.38 GAAP earnings per share. Those numbers handily beat Wall Street’s expectations of $16.39 billion in revenue and $2.18 GAAP earnings per share, plus 2.32 billion monthly and 1.51 billion daily active users. Facebook’s daily to monthly user ratio, or stickiness, held firm at 66 percent where it’s stayed for years, showing those still on Facebook aren’t using it much less.

Facebook shares had closed today at $150.42 but shot up over 11 percent following the record revenue and profit announcements to hover around $167. A big 30 percent year-over-year boost in average revenue per user in North America fueled those gains. Yet that’s still down from $186 where it was a year ago and a peak of $217 in July.
CEO Mark Zuckerberg went beyond his usual intro to the earnings report where he assures investors things are going well and highlights new opportunities. This quarter he noted “We’ve fundamentally changed how we run our company to focus on the biggest social issues, and we’re investing more to build new and inspiring ways for people to connect.”
Facebook managed to grow its DAU in both the critical US & Canada and Europe markets where it earns the most money after stagnation or shrinkage in previous quarters. The fact that Facebook is no longer dwindling it its most lucrative markets is surely contributing to its share price climb. Facebook’s monthly active user plateaued in North America but roared up in Europe. That was shored up by a reversal of last quarter’s decline in Rest Of World average revenue per user, which fell 4.7% in Q3 but bounced back with 16.5 percent growth in Q4.

Facebook raked in $6.8 billion in profit this quarter as it slowed down hiring and only grew headcount 5 percent from 33,606 to 35,587. It seems Facebook has gotten to a comfortable place with its security staff-up in the wake of election interference, fake news, and content moderation troubles. Its revenue is up 30 percent year-over-year while profits grew 61 percent, which is pretty remarkable for a 15-year old technology company.
Facebook’s plan to concentrate on product innovation in 2019 after focusing on security in 2018 was the core of today’s earnings call. Zuckerberg laid out a product roadmap for more ephemerality and encryption, how unifying the infrastructure of Facebook’s messaging apps will better connect Marketplace to WhatsApp, Groups will become an organizing function for more of the Facebook experience, and shopping features will crop up across the family of apps. You can read Zuckerberg’s full opening statement here.
New stats included 500 million daily Instagram Stories users and 2 million advertisers on Stories. Zuckerberg said he was pleasantly surprised by Facebook Portal sales but didn’t give specifics. He revealed 2.7 billion people now use Facebook’s family of apps each month. However, CFO David Wehner warned the company would eventually stop sharing Facebook-only stats, presumably to mask the shift of younger users to its other apps. He also cautioned that due to the shift of users from feeds to Stories that Facebook has less experience monetizing, and targeting headwinds due to increased privacy scrutiny, Facebook predicts mid-single digit revenue growth rate reductions each quarter this year.
We just released our community update and quarterly results.We’ve fundamentally changed how we run our company to…
Posted by Mark Zuckerberg on Wednesday, January 30, 2019
While the quarter went well, morale isn’t quite as rosy. It’s been a brutal quarter for Facebook At least its swifter user growth rates show Facebook survived its biggest ever data breach without scaring off too many people. Meanwhile it’s continuously struggled with scandals like hiring opposition research firm Definers, and it saw its new teen app Lasso largely flop. Facebook will have to convince investors it knows how to win back the next generation, or at least keep squeezong a lot more money out of the last one like it did in Q4.
Powered by WPeMatico
Mark Zuckerberg wants you to know he’s trying his damnedest to fix Facebook before it breaks democracy. Tonight he posted a 3,260-word battle plan for fighting election interference. Amidst drilling through Facebook’s strategy and progress, he slips in several notable passages revealing his own philosophy.
Zuckerberg has cast off his premature skepticism and is ready to command the troops. He sees Facebook’s real identity policy as a powerful weapon for truth other social networks lack, but that would be weakened if Instagram and WhatsApp were split off by regulators. He’s done with the finger-pointing and wants everyone to work together on solutions. And he’s adopted a touch of cynicism that could open his eyes and help him predict how people will misuse his creation.
Here are the most important parts of Zuckerberg’s security manifesto:
Zuckerberg embraces his war-time tactician role
“While we want to move quickly when we identify a threat, it’s also important to wait until we uncover as much of the network as we can before we take accounts down to avoid tipping off our adversaries, who would otherwise take extra steps to cover their remaining tracks. And ideally, we time these takedowns to cause the maximum disruption to their operations.”
The fury he unleashed on Google+, Snapchat, and Facebook’s IPO-killer is now aimed at election attackers
“These are incredibly complex and important problems, and this has been an intense year. I am bringing the same focus and rigor to addressing these issues that I’ve brought to previous product challenges like shifting our services to mobile.”

Balancing free speech and security is complicated and expensive
“These issues are even harder because people don’t agree on what a good outcome looks like, or what tradeoffs are acceptable to make. When it comes to free expression, thoughtful people come to different conclusions about the right balances. When it comes to implementing a solution, certainly some investors disagree with my approach to invest so much in security.”
Putting Twitter and YouTube on blast for allowing pseudonymity…
“One advantage Facebook has is that we have a principle that you must use your real identity. This means we have a clear notion of what’s an authentic account. This is harder with services like Instagram, WhatsApp, Twitter, YouTube, iMessage, or any other service where you don’t need to provide your real identity.”
…While making an argument for why the Internet is more secure if Facebook isn’t broken up
“Fortunately, our systems are shared, so when we find bad actors on Facebook, we can also remove accounts linked to them on Instagram and WhatsApp as well. And where we can share information with other companies, we can also help them remove fake accounts too.”‘

Political ads aren’t a business, they’re supposedly a moral duty
“When deciding on this policy, we also discussed whether it would be better to ban political ads altogether. Initially, this seemed simple and attractive. But we decided against it — not due to money, as this new verification process is costly and so we no longer make any meaningful profit on political ads — but because we believe in giving people a voice. We didn’t want to take away an important tool many groups use to engage in the political process.”
Zuckerberg overruled staff to allow academic research on Facebook
“As a result of these controversies [like Cambridge Analytica], there was considerable concern amongst Facebook employees about allowing researchers to access data. Ultimately, I decided that the benefits of enabling this kind of academic research outweigh the risks. But we are dedicating significant resources to ensuring this research is conducted in a way that respects people’s privacy and meets the highest ethical standards.”

Calling on law enforcement to step up
“There are certain critical signals that only law enforcement has access to, like money flows. For example, our systems make it significantly harder to set up fake accounts or buy political ads from outside the country. But it would still be very difficult without additional intelligence for Facebook or others to figure out if a foreign adversary had set up a company in the US, wired money to it, and then registered an authentic account on our services and bought ads from the US.”
Instead of minimizing their own blame, the major players must unite forces
“Preventing election interference is bigger than any single organization. It’s now clear that everyone — governments, tech companies, and independent experts such as the Atlantic Council — need to do a better job sharing the signals and information they have to prevent abuse . . . The last point I’ll make is that we’re all in this together. The definition of success is that we stop cyberattacks and coordinated information operations before they can cause harm.”
The end of Zuckerberg’s utopic idealism
“One of the important lessons I’ve learned is that when you build services that connect billions of people across countries and cultures, you’re going to see all of the good humanity is capable of, and you’re also going to see people try to abuse those services in every way possible.”
Powered by WPeMatico