Facebook: 88% of ad revenue is from mobile

Mark Zuckerberg

Facebook's Q3 Beats Expectations but Focus on Security Will Impact Future Results

Amid the distraction of Facebook's blockbuster earnings this week, the company quietly admitted to hosting more phony accounts than previously revealed.

"Our business is doing well", company CEO Mark Zuckerberg said in a statement.

With apparently no influence of the ongoing hearing regarding its role in Russian Federation meddling, Facebook late on Wednesday published its financial results for the quarter that ended on September 30, reporting that its profitability hit $4.7 billion mark and earned $10.3 billion in revenue compared to an estimate of $9.84 billion.

In addition, about 2-3% of its monthly users in the third quarter were fake, or "user-misclassified and undesirable accounts" - up from 1%, as previously reported.

On Tuesday, Facebook's general counsel Colin Stretch testified to Congress that 126 million USA users may have seen fake news or political advertisements bought by Russian Federation in 2016.

The company's growth doesn't matter "if our services are used in a way that doesn't bring people closer together or if the foundation of our society is undermined by foreign interference", he said on a call with investors to discuss Facebook's quarterly earnings report. Revenues were up 47% from a year ago.

The New York Times listed a sample of these advertisements, many containing outright messages supporting Donald Trump or attacking Hillary Clinton and the Obama Administration.

Facebook general counsel Colin Stretch told a hearing that Instagram posts by suspect Russian accounts were seen by some 20 million Americans previous year. He said this will inform "a higher standard of transparency than ads on TV or other media".

"They made a ton of money, but the Russian Federation investigation is clearly putting a cloud over everything for the moment", independent analyst Rob Enderle said. "We're investing so much in security that it will impact our profitability". Video, in particular, will be a key area in the next three years. Critics say a focus on engagement as the paramount metric and on connecting people as an end in itself are what made Facebook such a powerful medium for disinformation.

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