- Facebook Quarterly Profit Soars, Lifted by Mobile Ads
Facebook on Wednesday delivered another blockbuster earnings performance, showing solid growth in mobile ad revenues as the social network expands into new services.
While Facebook topped Wall Street expectations in the quarter, shares dove more than eight percent to $116.54 after an earnings call during which executives warned that revenue growth should be more tempered next year and that the company planned to invest heavily in engineers and data-centers for long-term goals.
“People were expecting them to hit it out of the park, and it is hard to sustain that,” Silicon Valley analyst Rob Enderle of Enderle Group said of the market reaction to what appeared to be a stellar earnings report.
Profit leapt 166 percent to $2.4 billion on revenue that surged to $7 billion from $4.5 billion during the same period a year earlier, third quarter results showed.
“We had another good quarter,” Facebook co-founder and chief executive Mark Zuckerberg said in the earnings release.
“We’re making progress putting video first across our apps and executing our 10 year technology roadmap.”
Eye on the future
Zuckerberg has laid out a long-term vision for Facebook that includes virtual reality, artificial intelligence, and even providing internet service to remote areas using self-flying drones.
Facebook’s third quarter earnings results “displayed strong top-line momentum and improved profitability,” Baird Equity Research said in a note to investors.
The social network had an average of 1.79 billion monthly users as of the end of September in a 16 percent jump from a year earlier, according to the earnings report.
The number of people accessing Facebook from mobile devices monthly climbed 20 percent to 1.66 million.
Revenue from mobile advertising accounted for about 84 percent of the ad money taken in by Facebook during the quarter, up from 78 percent during the same three-month period last year, according to the social network.
Facebook has become a powerhouse in online advertising, getting traction from new formats on mobile and its ability to glean data to deliver personalized or targeted marketing messages.
The research firm eMarketer estimates that worldwide ad revenues at Facebook will reach nearly $26 billion this year, up from $17.08 billion in 2015, and hit more than $33 billion in 2017.
It is also starting to bring in ad revenue from its Instagram photo- and video-sharing application.
Facebook recently took direct aim at video-loving adolescents, and Snapchat, with the release of a Lifestage iPhone app that allows teens to watch clips about the lives of their classmates.
Focus on video
Video sharing has been among nearer-term priorities for the Silicon Valley-based company, which has seen sharing of that kind of content climb.
“People are creating and sharing more video,” Zuckerberg said during an earnings call.
“It is pretty clear video is only going to become more important.”
The number of people broadcasting video in real time using a Facebook Live feature launched earlier this year has already quadrupled, according to Zuckerberg, who did not disclose numbers.
He said Facebook is experimenting in some markets with new ways to use smartphone cameras to directly share video at the social network or in its messaging applications such as WhatsApp.
Facebook is also testing an online Home venue designed as a place specifically for video.
Video is also becoming a large share of the content on the Facebook News Feed, according to Zuckerberg.
Facebook is among internet giants which have made artificial intelligences a priority, seeing it as a way to make features better understand and cater to needs of users.
The social network already uses artificial intelligence to find terrorist propaganda and identify hoax stories in Facebook news feed, Zuckerberg said.
“Facebook seems to be focused like a laser on improving their overall operations and making sure their revenue never dies,” analyst Enderle said.
“That all bodes well for Facebook longterm; they are not just sitting back.”
Jumia Grabs Opportunity for Black Friday Deals
Black Friday is a concept that originated in the United States, but the yearly retail fever has had a popularity boom across Africa in recent years, with customers moving to take advantage of the best deals that retailers have available.
Jumia, which is a marketplace with its focus placed on Africa quickly grabbed this opportunity when it first introduced the Black Friday event about nine years ago across its markets in Africa, focusing mainly on Egypt and Cairo which are the company’s top two cities when considering volume of orders.
Since its inception, the company has witnessed staggering levels of success with the event, and company data reveals that the love which consumers have for Black Friday has been increasing across the continent every year.
During the 2020 Black Friday event, the top sellers on the Jumia platform saw a 141% year-on-year increase in the amount of items sold, with one out of three clicks on average being a new customer. The company also said that it witnessed an increase in brand appetite across every one of Jumia’s 10 markets during last year’s sale, which lasted every Friday in November.
The trend is expected to continue this year’s version of Jumia’s Black Friday, as it is running from November 5 until November 30.
The company which is based in Nigeria has entered into partnerships with major brands like Adidas, HP, Unilever and Diageo, as well as with thousands of sellers in order to provide consumers the best deals on a very wide range of products.
The CEO of Jumia Nigeria, Massimiliano Spalazzi told Lagos-based Vanguard that the Black Friday programme has been a success every year, and is the biggest sale of the year.
He also stated that the 2021 Black Friday campaign will place focus on strengthening the company’s position as a brand within the African market, and providing support to the sellers.
NQR Payment Solution Excites Nigerians: Everyone Can Now Pay Sharp Sharp
Since the NQR payment solution was introduced to the Nigerian market in March of this year, it has reached millions of Nigerians across major markets in different states. Lagos, Ibadan, Abuja, Kano, Uyo, and Portharcourt are just a few of the states that have witnessed the fast seamless, and reliable NQR payment solution.
Business owners and customers across Nigeria have embraced NQR en masse as a result of the market penetration drive, citing the convenience, speed, and reliability of the payment option.
The NQR Payment Solution is a secure QR-code-based payments and collections platform that allows customers and business owners to accept and make payments for goods and services. The payment system will bring together all of the country’s closed QR code schemes for a more consistent user experience and faster digital adoption.
The campaign was led by several popular celebrities who thrilled the market crowds and showcased how the NQR works. Mercy Johnson, Mercy Aigbe, Odunlade Adekola, Real Warri Pikin, Saddiq Sani Saddiq, Bisola Aiyeola, and Nedu were a few of the ambassadors for NQR. They encouraged business owners to sign up for NQR, and encouraged customers to make payments with NQR.
The NQR payment solution team recently toured Southern Nigeria, with comedians Edo Pikin and Real Warri Pikin leading the train to sensitize the people about how the NQR merchant app works and how customers can #PaySharpSharp with live demonstrations.
NQR agents also went through the markets educating both business owners and customers about NQR’s benefits. Representatives from several commercial banks were also on ground to address business owners’ concerns. Everyone learned about the NQR payment system and had the opportunity to test it out as well as express their satisfaction with it.
NQR is now available in a store near you.
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