Facebook said its first quarter revenue, which is dominated by advertising, grew by 49 percent to $12 billion. Net profit jumped 65 percent to $4.9 billion. It was calculated that due to the privacy scandal Facebook will face a revenue loss.many users has deleted the account as per reports but 13 percent more people logged on each day in March than in the same month a year ago. It’s possible that the effect of deletions and other fallout will be more notable in the second quarter.
“Despite facing important challenges, our community and business are off to a strong start in 2018,” Mark Zuckerberg, CEO of Facebook said in a statement.
Facebook is at the most perilous moment in its 14-year history. The social network is weathering the fallout from a scandal over data privacy, in which the company’s lax policies enabled a Trump-affiliated consultancy called Cambridge Analytica to inappropriately siphon the private profiles of up to 87 million Facebook users. Facebook is facing several class action lawsuits as well as a Federal Trade Commission investigation into its practices.
Its stock has dropped 14 percent since the controversy erupted. But the strong quarterly growth sent its stock price up more than four percent in after-hours trading Wednesday.
The company is also in the midst of a costly hiring spree as it beefs up security to address disinformation and other forms of manipulation of its platform. The company plans to hire around 10,000 additional workers, including content moderators around the world, to bolster this effort.
A recent study by the American Press Institute and the Associated Press-NORC Center for Public Affairs Research found that just 12 percent of people trusted Facebook as a news source. Another poll by Axios and SurveyMonkey found that Facebook’s favorability fell 28 points in the past five months – more than twice as much as that of rivals Amazon and Google.