Facebook reports annualized growth in advertising revenues of 22% in the third quarter.

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Facebook reports annualized growth in advertising revenues of 22% in the third quarter.
The world’s largest social network claims to have earned £2.10 per share in the third quarter.
Facebook’s user base in the United States and Canada drops to 196 million.

Facebook Inc. (NASDAQ: FB) on Thursday released a better than expected third quarter earnings report for the fiscal year. However, the company stated that the number of its users in Canada and the United States declined in the last quarter.

Facebooked initially lost 2.5% in extended trading on Thursday, but later recovered the loss. The company’s shares now trade at £217.75 per share, a gain of almost 90% on the stock market since March. By comparison, Facebook traded at £162.50 per share at the beginning of the year.

Facebook’s financial results for the 3rd quarter compared to analysts’ estimates

According to Refinitiv, experts had predicted that the company would generate revenues of 15.34 billion pounds sterling in the third quarter. For earnings per share, their estimate was limited to 1.48 pounds sterling. In its Thursday report, Facebook reviewed both estimates and reported higher revenues of £16.64 billion and adjusted earnings per share of £2.10 for the third quarter.

In the previous quarter (Q2), the U.S. company had recorded the slowest revenue growth since its IPO in 2012.

The world’s largest social network reported that it had 1.82 billion daily active users (DAUs) in the last quarter, up from an expected 1.79 billion. At 2.74 billion, its monthly active users (MAUs) were also more than the FactSet consensus of 2.7 billion. Facebook generated £6.11 of average revenue per user (ARPU) in the third quarter, compared to the analyst estimate of £5.67 according to FactSet.

Facebook’s user base in the USA and Canada falls to 196 million

In Canada and the United States, the Facebook user base declined slightly to 196 million DAUs in the third quarter, compared to 198 million in the previous quarter. For the fourth quarter, the social media conglomerate forecasts that the number of its users in the two North American countries will stagnate or decline again.

In Europe, the number of its DAUs remained unchanged at 305 million. Facebook’s advertising revenues recorded annualized growth of 22% in the last quarter. At £192.95 million, the Menlo Park-based company’s revenues from “Other” in the third quarter were 7% lower year on year.

In separate news from the U.S., Pinterest also released a combative third quarter earnings report, which led to a roughly 27% rise in the stock market on Thursday.

At the time of writing this report, Facebook is valued at £620 billion and has a price-to-earnings ratio of 35.83.

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