Facebook, Inc. (NASDAQ:FB) [Detail Analytic Report] reported that it has opened a local office in Kuala Lumpur, capital of Malaysia. Kenneth Bishop, South-East Asia Managing Director at Facebook stated that the office launch marks a milestone for the social networking giant in Malaysia and they are committed to helping Malaysians and businesses connect in more meaningful ways. Their local team in the country will be focused on helping businesses tap into this unprecedented opportunity to connect with mobile-first consumers.
According to a recent survey by TNS, a research firm, 94% of Malaysians discovered brands and products on Facebook, and 62% make a purchase after discovery. There are currently over 18 million Malaysians on the social media platform, and 6.5 million people on photo-sharing platform Instagram, which the firm also owns. Malaysia also ranks 10th worldwide for the number of friends, which is 60% above the global average. The local office will be headed by Nicole Tan, who was earlier the managing director of J. Walter Thompson Malaysia, an advertising firm.
Tan stated that Malaysians on Facebook are an active and mobile first community. They spend more time watching video on their smartphones than consumers in any other nation in South-East Asia. The firm also revealed that South-East Asia is its fastest growing region and Malaysia, being a mobile first nation with 144% mobile penetration rate, is one of the major growth drivers. Out of the 1.65 billion users on the platform worldwide, over 241 million comes from South-East Asia, mostly accessing through mobile devices. The opening of the local office is part of its extension in the region following the launch of the Philippines office in April.
Yelp Inc. (NYSE:YELP) [Detail Analytic Report] posted its first quarter loss of $15.5 million. On a per-share basis, Yelp reported that it had a loss of 20 cents. The results came fell short of Wall Street outlooks. The average estimate of experts polled by Zacks Investment Research was for a loss of 15 cents a share. Yelp declared its revenue of $158.6 million in the quarter, beating Street forecasts. According to analysts polled by Zacks expected $155.6 million.
For the second quarter completing in July, Yelp reported that it expects revenue in the range of $167 million to $171 million. Analysts polled by Zacks had anticipated revenue of $167.5 million. The firm expects full-year revenue in the range of $690 to $702 million. Shares of Yelp have plummeted 26 percent since the starting of the year. Jeremy Stoppelman, co-founder and chief executive of Yelp commented that they had a great start to the year with local revenue growth accelerating to 40% year over year.
Stoppelman added they hit a major milestone in the period, surpassing 100 million cumulative reviews. With a mobile review contributed every two seconds on average in the period, their fresh, relevant review content is what makes Yelp a destination for consumers looking to find and transact with great local businesses. Their sizable, purchase-oriented traffic makes them the perfect place for local businesses to advertise and positions them well to capture the major opportunity as local ad dollars continue to shift online.
Square, Inc. (NYSE:SQ) [Detail Analytic Report] announced a bigger than expected quarterly loss as operating costs surged, Reuters reported. Square, which went public in November 2015, facilitates payments between businesses and customers with a credit card reader that turns any mobile phone into a payment terminal. The firm also makes point-of-sale registers and chip-enabled card readers. Dorsey co-founded both Square and Twitter, but shareholders have been showing greater confidence in his ability to build Square into a strong business than in his chances of turning around Twitter.
Shares of Square have soared nearly 50 percent since the firm went public on November 19, while Twitter has lost nearly half of its value in the similar period as the micro-blogging firm struggles to lure users and advertisers. Dorsey splits his time between the two firms, which are both based in the same area of San Francisco. Square’s net revenue jumped 51.4% in the period completed on March 31. Square also reported its gross payment volume the total dollar amount of all card payments processed by sellers jumped 45% to $10.3 billion. But its net loss attributable to common investors widened to $96.8 million from $48 million in the same period a year earlier as operating expenses jumped 72% to $207 million.
Dorsey stated in a letter to investors that Square spent more on marketing, developing its products and on staff during the period. Excluding one-time items, Square announced a loss of 14 cents a share, compared with the average analysts’ estimate of 9 cents, Reuters reported. Net revenue rose to $379.3 million from $250.6 million a year ago and $374.4 million in the Q4 of 2015.