Facebook Q1 Financial Report (2019)
“In the first quarter of 2019, we reasonably estimated a probable loss and recorded an accrual of $3.0 billion in connection with the inquiry of the FTC into our platform and user data practices...We estimate that the range of loss in this matter is $3.0 billion to $5.0 billion.”
The fine isn't particularly interesting on its own—Facebook can afford to pay $5 billion. What's fascinating is whether the FTC's forthcoming decision will set a precedent for regulating big tech.
First, let's unpack the fine, and why it won't phase Facebook. Facebook reported $15.07 billion in revenue in Q1 of this year, up from $11.96 billion in Q1 of 2018. It made enough money in a single quarter to eat the expected fine while maintaining profitability and continuing to move forward. Facebook's stock even surged through the news, peaking at a nearly 8% increase the following morning.
While $5 billion is a big number, it's not make-or-break for Facebook. The question of whether the FTC will regulate the way Facebook collects and uses user data, however, is.
Advertising was responsible for 99% of Facebook's Q1 revenue. If the FTC does anything that would make Facebook's ad platform less powerful—like changing the way Facebook can use user data for targeting, for example—it will be a blow at the core of its businesses. With companies like Google that are similarly reliant on monetizing user data, most of Silicon Valley is watching for the FTC's final decision—and the precedent it will set.
Why you should stop hiring with "grit" interviews
Grit Interviews
When you look at the great tech leaders of history—Sheryl Sandberg, Elon Musk, Oprah Winfrey—what is the one quality that unites them?
Grit, supposedly.
Grit is a concept invented by Angela Lee Duckworth in her bestselling book, Grit: The Power of Passion and Perseverance. The basic idea, as Duckworth describes, is that “grit—a combination of passion and perseverance for a singularly important goal—is the hallmark of high achievers in every domain.”
Since grit rolled onto the pop psychology scene, startups have quickly added it to their hiring criteria. “Grit" interviews, designed to gauge how well a candidate may fare in the face of adversity, have become staples for many companies.
The problem is that grit—at least as Duckworth defines it—is a pretty poor hiring signal. Work ethic and perseverance are good traits, but standard grit interviews are fundamentally ineffective.
Founder Club
As ideas start to grow into actual businesses, the number of tools and services you need to keep operations running smoothly grows as well. Take Product Hunt, for example. Its team uses 39 (!) products to keep things moving.
When it comes to choosing and implementing these services as a founder, the sheer number of options can be overwhelming—and prices can add up quickly. Enter: Founder Club, a curated collection of top products and services designed to help you start and grow your business.
Hot startups hiring now 🔥
🚀 Flyr is an intelligent platform for airline revenue management. Be challenged in solving a broad range of engineering, design, or strategic problems while inventing new products for airlines and online travel businesses around the globe. Hiring a senior backend engineer, senior data engineer, and more.
📱 Happs is a mobile news network that live-streams the most fascinating, important, and interesting “happenings” in the world. It's building a global community of contributors who have a passion for storytelling. Hiring a lead UX designer, data science intern, and more.
🏃 LA Society.com features fashion-forward athleisure wear with a sweet price point. Perfect for a midscale, middle-American market devoted to ditching the decal to save a lot of dollars. Hiring a creative director, CMO, and more.
🎁 Lumi helps e-commerce brands produce sustainable packaging with its simple online platform and worldwide network of factories. Thousands of digital-native brands rely on Lumi to supply memorable unboxing experiences. Hiring a VP of engineering, senior UX designer, and more.
💊 Roam Analytics is building the natural language processing infrastructure for modern healthcare systems. Its platform enables rapid specification, development, and deployment of world-class natural language processing systems. Hiring a front-end engineer, back-end engineer, and more.
📺 Tatari utilizes data and analytics to measure and buy ads across the linear and connected TV. Over 40 brands, both established and new to TV advertising, use Tatari’s measurement and media buying technology. Hiring a senior back-end engineer, full-stack engineer, and more.