Facebook expects rising costs to combat scandals to moderate after 2019

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The biggest clue to Facebook's future is the word "services" in Zuckerberg's quote above. "There's no silver bullet", he told investors.

Fans and esports insiders are blaming the lack of viewership on Twitch dominance and, at the same time, the poor marketing on Facebook's part.

For the third quarter, Facebook said its revenue rose 33 per cent to $US13.7 billion and profit increased 9 per cent to $US5.1 billion from a year earlier, roughly in line with what Wall Street had expected. Global user numbers for Facebook are still rising, but at a much slower pace than Wall Street is used to (or cares for).

But amid the relief rally, Facebook offered loud and repeated warnings that its controversies are not a thing of the past. Chief Financial Officer David Wehner also calmed concern about costs next year and quarterly earnings from the company suggested its business is holding up in the wake of scandals and privacy breaches. When I say that we got started slower on Facebook, that starts with literally rolling out on Facebook a number of months after we had rolled out on either WhatsApp or Instagram.

Facebook has tried for years to make its mark on the SME business world and has undeniably great opportunities in areas such as peer-to-peer payments via Messenger as well as Zuckerberg's penchant for virtual reality and, lately, home audio and video hardware.

What does that look like in cash?

In order to address revenue struggles, Facebook will look to focus on shift marketers to its Stories, messaging, and video offerings - due to the amount of time users spend in each of these areas beyond the standard news feed - but getting it right will be hard, particularly on Stories, according to Zuckerberg. But he cautioned that even then, the systems won't be flawless.

He also noted costs would continue to rise to deal with safety and security issues.

"These aren't problems you fix, they are problems you manage", Zuckerberg said of the challenge. Still, he said the company is committed to investing in video. "The rumors of its death are, without question, premature", Thibault said.

But then he's a busy man and one with a lot of problems on his plate. "And when it's too dominant without enough competition, you wonder if some of the unfortunate outcomes are a result of that dominance". Facebook's revenue increased 49% in Q3 2017 and 59% in Q3 2016.

On Tuesday, Arjuna Capital and the New York State Common Retirement Fund filed a shareholder proposal asking Facebook to publish a report on its policies for governing what is posted on its platform and explain what it is doing to "address content that threatens democracy, human rights, and freedom of expression". Connor thinks it would focus the minds of top executives on the task ahead.

CEO Mark Zuckerberg said people increasingly want to share ephemerally through Stories or privately via direct messaging.

Facebook COO Sheryl Sandberg summed it up neatly: If people don't trust Facebook, they won't use it. His creation, moreover, is a slick money-making machine.

"People want to share in ways that don't stick around permanently", Zuckerberg said on the call.

Zuckerberg said upcoming elections would be a test of its new systems, which he expects will be fully installed by end of 2019.

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