Facebook's rise in profits, users shows resilience after scandals

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Facebook's rise in profits, users shows resilience after scandals

Facebook said monthly active users in the first quarter rose to 2.2 billion, up 13 percent from a year earlier.

The government on Wednesday served a second set of notices to social networking giant Facebook and political analysis firm Cambridge Analytca. Facebook also touts a base of more than 2 billion active users, more than any other social media platform. Daily active users reached 1.45 billion, also an increase of 13 percent over the same time previous year.

The number of daily active users in Canada and the US - its most lucrative advertising demographic - rose by 100,000 from the previous quarter to 185 million. Overall, Facebook reported first quarter earnings of $11.96 billion, up from $8.03 billion a year ago; earnings per share (EPS) rose from $1.04 billion to $1.69 billion. Lawmakers unveil bipartisan internet privacy bill Cambridge Analytica whistleblower briefs House Dems MORE said during an earnings call when asked if the company was looking for different revenue streams.

Facebook shares jumped more than 5% in after hours trading after ending the regular session flat at $US159 ahead of the post close release of the results.

Asked about other possible ways Facebook could make money, Sandberg said that it's always evaluating other strategies like a subscription business.

Facebook's struggles with mobile have impacted the company before, most notably when Facebook was slow to move its advertising business to mobile after its 2012 IPO and its stock tanked.

The Cambridge Analytica story hit toward the end of the quarter, in the middle of March, however, so the full impact might not register in the latest filing financial filings.

"Everybody keeps talking about how bad things are for Facebook, but this earnings report to me is very positive, and reiterates that Facebook is fine, and they'll get through this", Daniel Morgan, senior portfolio manager at Synovus Trust Company, told Reuters.

British data analytics and political consulting firm Cambridge Analytica has been accused of harvesting personal information of millions of Facebook users illegally to help political campaigns and influence polls in several countries.

Srikant Ayyar wrote that he had read their recent paper with interest and continued: "Our group does similar work with the goal of improving our product for people who use it and advertisers".

In its reply to the notice issued by the IT ministry, Cambridge Analytica had earlier this month categorically denied using any data of Indians from Facebook.

The company's healthy ad business drew the vast majority of sales, but investors often look to the company's nascent Messenger and WhatsApp divisions as potentially massive sources of revenue in the future.

"But then something happened", it continues, before explaining that problems started when "we had to deal with spam, clickbait, fake news, and data misuse". Meanwhile, it's working to address new privacy regulation from Europe, which Facebook has said could reduce the amount of daily users from that region.

"In the coming months, GDPR will give us another opportunity to make sure people fully understand how their information is used by our services", she stated, pointing to Facebook's decision to extend these controls to everyone using the platform globally.

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