Facebook earnings, user base jump even as scandals grow

CEO Mark Zuckerberg also oversees a jump in sales and profit.
Facebook's spat with Apple on Wednesday shows it can't stay out of trouble. But the social network seems immune to scandals as well.

the number of people who log on to Facebook every month -- rose 9 percent year over year to 2.32 billion in the fourth quarter, which ended Dec. 31. User growth is crucial for Facebook, which makes its money by selling advertising targeted to user interests.

The rise in users comes as the company deals with yet another black eye. Overnight, Apple blocked a research app the social network was distributing to iPhone users, after it was discovered Facebook had sidestepped the review process.

The Facebook Research app paid users between the ages of 13 to 35 up to $20 per month in exchange for letting Facebook access their phone and web activity, including personal messages.

The scrape with Apple comes as Facebook, which still posted a 61 percent rise in profits, is grappling with the most serious crisis in its 15-year history. The leadership of CEO Mark Zuckerberg and COO Sheryl Sandberg has been called into question, particularly after The New York Times reported that the two executives ignored warnings and deflected blame as scandals mounted.

The social network has also faced criticism for reportedly giving other tech companies greater access to user data than was previously disclosed.

And Facebook's image wasn't helped by a software bug that exposed the photos of up to 6.8 million people to third-party app developers.

The problems, along with growing concerns about how Facebook profits from the user data it collects, prompted calls for people to delete their Facebook accounts. The movement was so widespread that the hashtag #DeleteFacebook trended on Twitter for a period in March.

"There's a lot of negativity about the impact of technology.

Some of it is fair and some of it is misplaced," Zuckerberg said during a conference call with analysts on Wednesday. "And we and the tech industry overall should be scrutinized heavily because we play a role in many people's lives."



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