Even though Facebook’s acquisition of Instagram didn’t officially close until early September, too late to have an impact on the social network’s third-quarter results, the photo-sharing application was praised by Facebook Co-Founder and CEO Mark Zuckerberg during the company’s earnings call.
Zuckerberg said of Instagram:
Additionally, I want to talk about Instagram. This is really a platform success story. We got to know them because they built a social integration with us that a lot of people really liked, and both companies saw the opportunity to do even more together. When we agreed to acquire them, Instagram had 27 million registered users. Today, they have more than 100 million. The most recent comScore report shows that in the U.S. there is more mobile time spent on Instagram than on Twitter. By giving Instagram access to some of the tools we have internally here at Facebook, they can grow even faster than they would have alone.
And Chief Financial Officer David Ebersman reminded those following the earnings call that Instagram did not factor in to Facebook’s third-quarter results:
None of the user numbers includes Instagram, which, as Mark mentioned, passed 100 million registered users and continues to grow
We closed the acquisition toward the end of the third quarter, so the impact was next to zero — certainly zero on the top line, and next to zero on the bottom line. In the fourth quarter, we will have expenses both from the employees and the investments we are making in Instagram, and also the amortization of the intangible assets that we acquired.
Readers: Did Facebook’s acquisition of Instagram cause you to download it for the first time or use it more often?