It is universal. When size increases the growth slows down comparatively. The same is now being faced by Facebook Inc. The company has reached $27 billion in revenue this year as revealed on Wednesday in the third-quarter revenue, but the growth rate has been slower.
The revenue report reveals the social giant has soared 56 percent to $7 billion and the quarterly profit almost tripled to $2.38 billion.
Facebook said it is important to maintain at least the current pace and so starting mid of next year less ads will be showed to users in news feed. This will though result with decline in advertising growth.
Chief Financial Officer Dave Wehner said they are expecting to power growth by adding more users as well as help them spend more amount of time of the platform. Video may play a key role in the strategy.
Pivotal Research analyst Brian Wieser said, “The growth rate has to be slower; it’s a law of large numbers, if nothing else… Nobody was expecting the company to grow at the same rate.”
Following the revenue report stock price of the social giant went down over 7 percent.
Meanwhile, it is good to know the growth of Facebook has outstripped Alphabet Inc., which posted quarterly revenue last week revealing 20 percent growth.
The two corporate giants together garnered 68 percent of spending on US online advertising in the second quarter. The other companies managed just 5 percent.