Users still like Facebook as numbers rise despite data scandal

Despite ongoing privacy concerns and mounting scrutiny from regulators around the world, Facebook reported Wednesday that their active user metrics actually went up by 13 per cent year-over-year in the first quarter of 2018.

The social network giant reported an average of 1.45 billion daily active users, and 2.2 billion monthly active users for March. But at the same time, Facebook flagged the potential for user declines in Europe as a result of tough new privacy regulations in the E.U.

Speaking to analysts, CEO Mark Zuckerberg talked about a lot of the same things he told the U.S. Congress and journalists at various times over the past month. The earnings call was peppered with references to the importance of data privacy and Facebook’s social responsibility, but Zuckerberg also made comments that made it sound like he’s trying to move past the scandal.

“Overall 2018 is a year of important investments, to keep people safe and also to keep building the experiences people expect from us,” he said. “We’re taking a broader view of our responsibility and investing to make sure our tools are used for good, and we also need to keep moving forward.”

In the wake of the Cambridge Analytica data breach, some advertisers publicly said that they’re abandoning the platform, and some users talked about scaling back their time on Facebook, or deleting their accounts altogether.

Because the story broke on March 18, Wednesday’s numbers might not be fully reflective of the fallout of the scandal.

Facebook COO Sheryl Sandberg downplayed the significance of the advertiser backlash. “We heard from a handful of advertisers who paused spend — one of whom has already come back — and we haven’t seen a meaningful trend or anything much since then.”

On the face of it, the numbers painted a cheerful picture of Facebook. Revenue went up by 49 per cent year-over-year to US$11.9 billion, while costs and expenses went up by 39 per cent to US$6.5 billion for the quarter.

Facebook CFO David Wehner said that as the European General Data Protection Regulation comes into force on May 25, it will likely result in flat to slightly lower active users in Q2.