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Facebook shares shoot up after strong Q4 earnings despite data breach – TechCrunch

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Facebook managed to beat Wall Street’s estimates in its Q4 earnings amidst a constant beat down in the press. Facebook hit 2.32 billion monthly users, up 2.2 perecent from 2.27 billion last quarter, speeding up its growth rate. Facebook climbed to 1.52 billion daily active users from 1.49 billion last quarter for a 2 percent growth rate that dwarfed last quarter’s 1.36 percent.

Facebook earned $16.91 billion off all those users with a $2.38 GAAP earnings per share. Those numbers handily beat Wall Street’s expectations of $16.39 billion in revenue and $2.18 GAAP earnings per share, plus 2.32 billion monthly and 1.51 billion daily active users. Facebook’s daily to monthly user ratio, or stickiness, held firm at 66 percent where it’s stayed for years, showing those still on Facebook aren’t using it much less.

Facebook shares had closed today at $150.42 but shot up over 11 percent following the record revenue and profit announcements to hover around $167. A big 30 percent year-over-year boost in average revenue per user in North America fueled those gains. Yet that’s still down from $186 where it was a year ago and a peak of $217 in July.

CEO Mark Zuckerberg went beyond his usual intro to the earnings report where he assures investors things are going well and highlights new opportunities. This quarter he noted “We’ve fundamentally changed how we run our company to focus on the biggest social issues, and we’re investing more to build new and inspiring ways for people to connect.”

Squeezing Money From The Olds

Facebook managed to grow its DAU in both the critical US & Canada and Europe markets where it earns the most money after stagnation or shrinkage in previous quarters. The fact that Facebook is no longer dwindling it its most lucrative markets is surely contributing to its share price climb. Facebook’s monthly active user plateaued in North America but roared up in Europe. That was shored up by a reversal of last quarter’s decline in Rest Of World average revenue per user, which fell 4.7% in Q3 but bounced back with 16.5 percent growth in Q4.

 

Facebook raked in $6.8 billion in profit this quarter as it slowed down hiring and only grew headcount 5 percent from 33,606 to 35,587. It seems Facebook has gotten to a comfortable place with its security staff-up in the wake of election interference, fake news, and content moderation troubles. Its revenue is up 30 percent year-over-year while profits grew 61 percent, which is pretty remarkable for a 15-year old technology company.

Earnings Call

Facebook’s plan to concentrate on product innovation in 2019 after focusing on security in 2018 was the core of today’s earnings call. Zuckerberg laid out a product roadmap for more ephemerality and encryption, how unifying the infrastructure of Facebook’s messaging apps will better connect Marketplace to WhatsApp, Groups will become an organizing function for more of the Facebook experience, and shopping features will crop up across the family of apps. You can read Zuckerberg’s full opening statement here.

New stats included 500 million daily Instagram Stories users and 2 million advertisers on Stories. Zuckerberg said he was pleasantly surprised by Facebook Portal sales but didn’t give specifics. He revealed 2.7 billion people now use Facebook’s family of apps each month. However, CFO David Wehner warned the company would eventually stop sharing Facebook-only stats, presumably to mask the shift of younger users to its other apps. He also cautioned that due to the shift of users from feeds to Stories that Facebook has less experience monetizing, and targeting headwinds due to increased privacy scrutiny, Facebook predicts mid-single digit revenue growth rate reductions each quarter this year.

While the quarter went well, morale isn’t quite as rosy. It’s been a brutal quarter for Facebook At least its swifter user growth rates show Facebook survived its biggest ever data breach without scaring off too many people. Meanwhile it’s continuously struggled with scandals like hiring opposition research firm Definers, and it saw its new teen app Lasso largely flop. Facebook will have to convince investors it knows how to win back the next generation, or at least keep squeezong a lot more money out of the last one like it did in Q4.

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We just released our community update and quarterly results.We’ve fundamentally changed how we run our company to…

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Posted by Mark Zuckerberg on Wednesday, January 30, 2019

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While the quarter went well, morale isn’t quite as rosy. It’s been a brutal quarter for Facebook At least its swifter user growth rates show Facebook survived its biggest ever data breach without scaring off too many people. Meanwhile it’s continuously struggled with scandals like hiring opposition research firm Definers, and it saw its new teen app Lasso largely flop. Facebook will have to convince investors it knows how to win back the next generation, or at least keep squeezong a lot more money out of the last one like it did in Q4.

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Facebook managed to beat Wall Street’s estimates in its Q4 earnings amidst a constant beat down in the press. Facebook hit 2.32 billion monthly users, up 2.2 perecent from 2.27 billion last quarter, speeding up its growth rate. Facebook climbed to 1.52 billion daily active users from 1.49 billion last quarter for a 2 percent […]

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Josh Constine is a technology journalist who specializes in deep analysis of social products. He is currently an Editor-At-Large for TechCrunch and is available for speaking engagements.

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Previously, Constine was the Lead Writer of Inside Facebook through its acquisition by WebMediaBrands, covering everything about the social network.

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Constine graduated from Stanford University in 2009 with a Master’s degree in Cybersociology, examining the influence of technology on social interaction. He researched the impact of privacy controls on the socialization of children, meme popularity cycles, and what influences the click through rate of links posted to Twitter.

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Constine also received a Bachelor of Arts degree with honors from Stanford University in 2007, with a concentration in Social Psychology & Interpersonal Processes.

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Josh Constine is an experienced public speaker, and has moderated over 120 on-stage interviews in 15 countries with leaders including Facebook CEO Mark Zuckerberg, whistleblower Edward Snowden (via on-stage video conference), and U.S. Senator Cory Booker. He is available to moderate panels and fireside chats, deliver keynotes, and judge hackathon and pitch competitions.

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Constine has been quoted by The Wall Street Journal, CNN Money, The Atlantic, BBC World Magazine, Slate, and more, plus has been featured on television on Good Morning, America, The Today Show, China Central Television, and Fox News. Constine is ranked as the #1 most cited tech journalist on prestigious news aggregator Techmeme.

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[Disclosures: Josh Constine temporarily advised a college friend’s social location-sharing startup codenamed ‘Signal’ that was based in San Francisco before dissolving in 2015. This advising role was cleared with AOL and TechCrunch’s editors and has concluded. Constine’s fiancu00e9e Andee Gardiner co-founded startup accelerator Founders Embassy. Constine’s cousin Darren Lachtman is the founder of influencer advertising startup Niche that was acquired by Twitter, and he’s since left and founded teen content studio Brat. Constine does not write about Founders Embassy or Brat. Constine has personal acquaintances stemming from college housing circa 2007 with founders at Skybox Imaging (now Terra Bella), Hustle, Snapchat, and Robinhood, but does not maintain close social ties with them nor does that influence his writing. Constine occasionally does paid speaking engagements at conferences, but only those funded by companies he does not cover. Constine owns a small position in Ethereum and Bitcoin cryptocurrencies, does not day-trade, and discloses his positions directly in articles where appropriate. Constine does not do consulting, angel investing, or public stock trading beyond public stock invesments by his parents’ estate that he has no role in managing or advising.]

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Josh Constine is a technology journalist who specializes in deep analysis of social products. He is currently an Editor-At-Large for TechCrunch and is available for speaking engagements.

nn

Previously, Constine was the Lead Writer of Inside Facebook through its acquisition by WebMediaBrands, covering everything about the social network.

nn

Constine graduated from Stanford University in 2009 with a Master’s degree in Cybersociology, examining the influence of technology on social interaction. He researched the impact of privacy controls on the socialization of children, meme popularity cycles, and what influences the click through rate of links posted to Twitter.

nn

Constine also received a Bachelor of Arts degree with honors from Stanford University in 2007, with a concentration in Social Psychology & Interpersonal Processes.

nn

Josh Constine is an experienced public speaker, and has moderated over 120 on-stage interviews in 15 countries with leaders including Facebook CEO Mark Zuckerberg, whistleblower Edward Snowden (via on-stage video conference), and U.S. Senator Cory Booker. He is available to moderate panels and fireside chats, deliver keynotes, and judge hackathon and pitch competitions.

nn

Constine has been quoted by The Wall Street Journal, CNN Money, The Atlantic, BBC World Magazine, Slate, and more, plus has been featured on television on Good Morning, America, The Today Show, China Central Television, and Fox News. Constine is ranked as the #1 most cited tech journalist on prestigious news aggregator Techmeme.

nn

[Disclosures: Josh Constine temporarily advised a college friend’s social location-sharing startup codenamed ‘Signal’ that was based in San Francisco before dissolving in 2015. This advising role was cleared with AOL and TechCrunch’s editors and has concluded. Constine’s fiancu00e9e Andee Gardiner co-founded startup accelerator Founders Embassy. Constine’s cousin Darren Lachtman is the founder of influencer advertising startup Niche that was acquired by Twitter, and he’s since left and founded teen content studio Brat. Constine does not write about Founders Embassy or Brat. Constine has personal acquaintances stemming from college housing circa 2007 with founders at Skybox Imaging (now Terra Bella), Hustle, Snapchat, and Robinhood, but does not maintain close social ties with them nor does that influence his writing. Constine occasionally does paid speaking engagements at conferences, but only those funded by companies he does not cover. Constine owns a small position in Ethereum and Bitcoin cryptocurrencies, does not day-trade, and discloses his positions directly in articles where appropriate. Constine does not do consulting, angel investing, or public stock trading beyond public stock invesments by his parents’ estate that he has no role in managing or advising.]

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Years after its Audm acquisition, The New York Times launches its own audio app

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Several years ago, The New York Times acquired audio journalism app Audm with the goal of using it as the basis of its own audio product. Today, the media company is unveiling the result of that work with the official debut of New York Times Audio — a new mobile app that combines the publication’s top podcasts, like “The Daily,” “The Ezra Klein Show,” “Hard Fork,” “Modern Love,” “The Run-Up,” and others, with those made exclusively for the new platform. These will range from short news briefs to lifestyle content to narrated longform journalism and more.

Plus, thanks to its $25 million acquisition of the production studio behind “Serial,” the app includes content related to that deal, as well. This includes the namesake show itself, plus new shows from the studio like “The Trojan Horse Affair,” “The Coldest Case in Laramie,” and others, as well as “This American Life,” hosted by Ira Glass, among others.

The Times has heavily invested in audio programming as another way to reach its audience, and particularly those who want to engage with its journalism while on the go — like when commuting, walking their dog, running, or traveling, for example. But, typically, NYT’s content is accessed through the third-party platforms where users already stream their podcasts, like Apple Podcasts or Spotify.

Image Credits: NYT

Isolating that content in its own app gives NYT a more direct relationship with its audience, of course, which means it can also collect more data on user behavior, like what people stream and download. (Plus, it could sell its own ads). But its appeal could be limited given that the app will not have a podcast catalog to rival existing platforms, where people already stream their favorite NYT shows, like “The Daily.”

And, with the addition of exclusives to NYT Audio, listeners will have to constantly toggle between apps to hear all the shows they want to tune into — and that’s not necessarily something they’ll want to do.

Even Spotify belatedly realized that its exclusive strategy with podcasts was not paying off. The company once believed it could entice users with big names and could generate its own popular originals by purchasing studios, but it has since pivoted to focus more on being the hosting platform rather than the creator, laying off top podcast execs in the process. NPR also recently canceled four of its podcasts amid its own set of layoffs, which makes for an uncertain market ahead for NYT Audio.

Image Credits: NYT

Still, there could be some attraction for NYT loyalists or those who haven’t already made podcast listening a part of their routines, and will see this new app as a sort of value-add on top of their existing subscription. For the crowd willing to give the app a try, there will be a number of new shows to sample.

For starters, there’s a new morning show called “The Headlines,” hosted by Times reporter Annie Correal, that will catch you up on top stories in 10 minutes or less and let you hear from reporters across NYT’s newsroom. Meanwhile, a new short-form series, “Shorts,” will offer lifestyle content like recipe idea, TV and book recommendations, travel inspiration, and tips for living well.

A feature called “The Magazine Stand” will offer a curated selection of narrated longform journalism from other outlets, which is essentially what Audm had provided.

Image Credits: NYT

The company says that, as a result of this launch, the standalone Audm app will now be sunset. All existing Audm iOS subscribers will automatically transition to NYT Audio at the same monthly or annual rate, so they can continue accessing their existing narrated article content.

There is also a “Daily Playlist” that pieces together top stories, culture stories and other content into an hour or less and a “Reporter Reads” feature where journalists read their own work and share additional context around the story.

“This American Life,” “Serial” and other shows from Serial Productions are also included, along with sports talk shows from “The Athletic.”

Image Credits: NYT

The NYT’s audio app has been in beta testing for roughly a year and half before today’s arrival, and is available to all news subscribers.

The company notes it has no plans to pull any of its existing content from third-party platforms, like Apple or Spotify, as a result of this launch.

The app’s arrifval follows The New York Times’ expanded investment in its own lineup of dedicated mobile apps which now include the popular NYT Cooking app, and, more recently, an updated NYT Games (previously, Crossword), which recently benefitted from its Wordle acquistion.

“We’re thrilled to introduce more people to a new way of experiencing The New York Times,” said Stephanie Preiss, senior vice president and general manager, Audio, in a launch announcement. “Audio journalism has the power to bring stories to life, and our app now allows our audience to take The Times with them — on dog walks, while commuting — in moments when reading isn’t an option. Offering New York Times Audio to news subscribers is just one way we’re adding more value to a Times subscription, in more moments throughout their day,” she added.

The New York Times Audio app is iOS-only.

As of the time of writing, it’s moved up to the No. 5 slot in the U.S. App Store’s News section.

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Roku launches new sports hub dedicated to women’s sporting events

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Roku is giving sports fans what they want—better access to women’s live sports. The company announced Wednesday the launch of Women’s Sports Zone, a new centralized hub that makes it easier for users to search, discover and stream women’s sports programming, from live games, matches and events to on-demand and free content.

Women’s Sports Zone will provide games from the National Women’s Soccer League, US Women’s World Cup, US Women’s Open, the Ladies Professional Golf Association (LPGA) and more. In addition, fans can watch free female-focused sports content on The Roku Channel, such as the Women’s Sports Network, “The Longshots,” “Prodigy” and “Bring It!” among others.

Plus, the newly launched hub comes as the 2023 WNBA (Women’s National Basketball Association) season tips off this Friday, May 19, giving Roku users the ability to stream all games across channels like ESPN, ABC, CBS and CBS Sports Network, along with streaming services like ESPN+, Paramount+, Prime Video and WNBA League Pass.

The Women’s Sports Zone is located within Roku’s sports experience. Users can scroll down to the “Sports” tab on the home screen to find the new hub. They can also search for “women’s sports” or a favorite team or league in Roku Search or by using Roku Voice with the TV remote.

Demand around women’s sports increases year after year, with 30% of U.S. sports fans saying they’re watching more women’s sports than they were five years ago, per a 2022 study by the National Research Group. Additionally, 85% of sports fans — including 79% of men – agree that it’s essential for women’s sports to continue growing in popularity. Just by looking at the WNBA alone, viewership has grown dramatically for the league. Its 2022 season garnered an average of 416,000 viewers across all networks, making it the most-watched full season since 2006.

“The popularity and demand for women’s sports is greater than ever, and at Roku, we continue to commit to elevating this important programming for our customers,” said Kelli Raftery, Roku’s VP of Global Communications, in a statement. “At a time when it is harder than ever to find what you want to watch, our new Women’s Sports Zone makes it easier for fans to get to the content they love, and it arrives just in time for the tip-off of the WNBA season this Friday.”

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Disney+ changes up its release model, plans to launch all ‘Echo’ episodes at once

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President of Marvel Studios Kevin Fiege took to the Disney Upfront stage Tuesday to announce that Marvel’s new Disney+ show, “Echo,” is getting a binge release– a first for an MCU series. Disney+ will drop all Season 1 episodes on November 29.

The “Hawkeye” spinoff stars Alaqua Cox as Maya Lopez, a deaf Native American character who has photographic reflexes. She is the adoptive daughter of supervillain Kingpin (played by Vincent D’Onofrio), however, has been known to fight alongside Daredevil, who wants to take down the criminal underworld. It’s reported that Charlie Cox is returning as Daredevil in “Echo.”

This will be the fourth female-led MCU series on Disney+, joining “Wandavision,” “She-Hulk” and “Ms. Marvel.”

Disney’s new binge strategy is a surprising move for the company and follows in the footsteps of rival Netflix, which swears by its bingeable release model as it drives “substantial engagement, especially for newer titles,” Netflix previously said in its Q3 2022 shareholder letter.

Disney+ tested the waters with its Star Wars titles, starting off with “Obi-Wan Kenobi,” which was the first live-action Star Wars show to premiere with multiple episodes. Meanwhile, “Andor” had a three-episode premiere and was the longest live-action Disney+ season with 12 episodes.

It’s likely the company feels the pressure to change up its release approach after losing four million Disney+ subscribers in the recent quarter, bringing the total to 157.8 million. In the first quarter of 2023, the streaming service saw its first subscriber loss, dropping 2.4 million subs.

Disney plans to save $5.5 billion in overall costs, with $3 billion going toward content savings.

The move also comes as Marvel rethinks its game plan. Fiege previously said the studio wants to be more calculated about which MCU projects get released. It’s been argued that many fans are overwhelmed by the wave of superhero shows, and it’s time for Marvel to slow it down a bit.

“It is harder to hit the zeitgeist when there’s so much product out there — and so much ‘content,’ as they say, which is a word that I hate,” Fiege said in an Entertainment Weekly interview. “But we want Marvel Studios and the MCU projects to really stand out and stand above. So, people will see that as we get further into Phase 5 and 6. The pace at which we’re putting out the Disney+ shows will change so they can each get a chance to shine.”

So, instead of airing episodes week to week, the decision to release “Echo” as a complete season looks to be the beginning of a deliberate effort to gradually reduce the MCU release schedule.

During the Upfronts presentation, Fiege also revealed the official premiere date for “Loki” Season 2, which is coming to Disney+ on October 6.

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