Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa Bay news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Charlotte news in your inbox

Catch up on the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Photo: Thomas Trutschel/Photothek via Getty Images

Facebook reported stellar earnings Wednesday, despite a scandal-ridden end to 2018. It beat estimates on revenue, earnings and user growth and said it's making far more money per user than analysts expected, much more than it ever has before.

Why it matters: The company is facing unprecedented scrutiny from policymakers, business partners and privacy advocates, but strong growth — particularly overseas — demonstrates that users and advertisers are largely unfazed by the corporate drama.

The new numbers:

  • 2.7 billion monthly active users across all of its apps
  • 2 billion daily active users across all of its apps
  • 66% of Facebook core app users also are daily active users 
  • 500 million daily active users of Instagram Stories
  • 7 million total advertisers across all apps 
  • 2 million total businesses active on Stories 

The big takeaways on growth:

  • Facebook has improved its ability to monetize users. While user growth was strong, just about matching estimates, average revenue per user was up much higher than expected, by 20% year over year.
  • The Asia-Pacific region is booming. The company added more daily active users and monthly actives users across every region in the world, including North America, which is largely saturated with existing Facebook users, anyway. It experienced especially strong growth in the Asia-Pacific region.
  • It posted a record $6.8 billion in profits, despite executives' assurance that investments in safety and security on its platform have been so costly that they have affected its bottom line.
  • Facebook warned revenue growth would slow. "Revenue growth rates will continue to decelerate throughout 2019 on constant current basis," said chief financial officer David Wehner. The company said it will rely more heavily on Story ads than News Feed ads for growth.

The big takeaways on policy:

  • Facebook's earnings call didn’t touch policy, per Axios' David McCabe. Neither analysts nor the company addressed one of the the company's main concerns in Washington, an ongoing Federal Trade Commission investigation into its privacy practices.
  • But Facebook says the privacy issue could hurt its bottom line this year. Wehner warned that Facebook could face "headwinds" on its ad-targeting business due to privacy concerns in 2019.
  • Safety and security cost the company more than expected. "A lot of our business challenges have been self imposed," said CEO Mark Zuckerberg, "Investment in security and safety increased cost and reduced revenue."

The big takeaways on the future of the business:

  • Messaging is a massive priority: Executives spoke at length about the importance of monetizing and improving Facebook's messaging services. The company has made plans to integrate the workings of its messaging apps.
  • Stories are driving advertising growth: The company announced that 2 million businesses are actively using Facebook Stories. Zuckerberg said stories and messaging are becoming more central to the user experience.
  • The company took PR around earnings seriously. Executives called reporters with prepared talking points as soon as the earnings were released Wednesday afternoon. Chief operating officer Sheryl Sandberg did a few televised interviews as well.

Go deeper

Texas AG sues Biden administration over deportation freeze

Texas Attorney General Ken Paxton speaks to members of the media in 2016. Photo: Alex Wong/Getty Images

Texas Attorney General Ken Paxton is suing the Biden administration in federal district court over its 100-day freeze on deporting unauthorized immigrants, and he's asking for a temporary restraining order.

Between the lines: The freeze went into effect Friday, temporarily halting most immigration enforcement in the U.S. In the lawsuit, Paxton claims the move "violates the U.S. Constitution, federal immigration and administrative law, and a contractual agreement between Texas" and the Department of Homeland Security.

Dan Primack, author of Pro Rata
1 hour ago - Podcasts

Carbon Health's CEO on unsticking the vaccine bottleneck

President Biden has said that getting Americans vaccinated for COVID-19 is his administration’s top priority given an initial rollout plagued by organizational, logistical and technical glitches.

Axios Re:Cap digs into the bottlenecks and how to unclog them with Carbon Health chief executive Eren Bali, whose company recently began helping to manage vaccinations in Los Angeles.