Social networking giant Facebook released its first quarter earnings recently. World’s largest social media player is slowing down in the race of profits. The growth of revenue for the Facebook Inc shrunk in the first quarter due to strong dollar. For the first time since 2012 Facebook is observing such a large dip. Sales saw growth of 42 percent. But the experts have projected the rate to 49 percent without anticipating any currency effects.
The revenue growth for first quarter is around $3.54 billion according to the statement released by the company. The company is generating more than half of its profit from non US markets. The strategy consists of attracting more users in Asia and the acquisition of popular messaging application in Europe. This massive expansion came with a cost attached to it. The reach of quality advertisement has been expanded by the Facebook along with boost to mobile phone advertising. The otherwise strong performance of the company was affected by 6.2 percent sharp increase in the dollar’s value.
The advertising contributes 94 percent to the annual revenue of the company. The advertising sales earned 46 percent ($3.32 billion) last year. The company was expecting 55 percent growth without currency fluctuations. Facebook claims that it has 1.44 billion monthly active users on the application. The number was around 1.39 billion during the fourth quarter of the last year. Sheryl Sandberg, Chief Operating Officer said that the company anticipates deeper impact on the revenue due to currency fluctuation but making long term plans for the same.