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With Workplace, Facebook Adds Another Feather to Its Cap

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Dec. 12 2018, Updated 10:30 a.m. ET

Privacy and security

Facebook’s (FB) Workplace subsidiary is now ISO 27018 certified, showing that Workplace takes its customers’ data security seriously. It also became ISO 27001 certified last year, another milestone highlighting its focus on data privacy and security, a major sticking point for companies in the digital era.

Workplace specializes in corporate networking, providing companies with tools to let their workers network and collaborate online. Unlike its parent, Facebook, which relies on advertising dollars, Workplace makes money by selling subscriptions for its services. Workplace’s service packages start at $3 per month per user. It has signed over 30,000 corporate clients, including big names such as Walmart and Vodafone.

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Facebook’s prized business

Workplace is set for a major shift next year, in which it will occupy its own web domain separate from Facebook. The company, one of Facebook’s prized subsidiaries, is focused on a business that could open up a multibillion-dollar revenue stream for Facebook outside the advertising industry. Amid the race for digital advertising revenue, Facebook is being pressured to create new revenue opportunities outside advertising.

Facebook’s advertising business slows

Facebook generated $13.7 billion in third-quarter revenue, of which advertising sales accounted for 98.5%. However, advertising sales growth slowed to 33% YoY (year-over-year) from 42% in the previous quarter and 49% in the third quarter of the year prior. Meanwhile, Google’s (GOOGL), Twitter’s (TWTR), and Yelp’s (YELP) advertising sales grew 20.3%, 29%, and 16%, respectively, and Amazon’s (AMZN) sales rose 122% YoY in the segment that houses its advertising business.

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