While the world and statisticians may assume that Facebook is dead, the company has presented its second-quarter financial reports and according to it, the social media giant has been going strong throughout the COVID-19 pandemic.
With the numbers show in the report, Facebook’s stock price has also gone up in the after-market trading.
After releasing the report on Thursday, Facebook’s CEO Mark Zuckerberg also told that the revenue was up by 11% making up to $18.69 billion and the growth also helped the company earn $1.80 a share, a 98 percent increase on a year-on-year basis. This was much more than Facebook’s expectations as revealed by market data firm Refinitive who predicted that Facebook will report quarterly earnings of $1.39 a share and revenue of $17.4 billion.
Considering the advertising recession in the broader economy and the backlash that Facebook had to face in the name of privacy issues and moderating offensive content, these financial numbers are extremely surprising.
From now onwards, the investors will also measure Facebook’s active user metrics too in order to analyze the balance sheet’s health. Facebook has reported 1.79 billion daily active users by the end of the second-quarter which is another increment when compared to 1.73 billion daily active users in the first one. While the company has been celebrating this win too, financial data firm FactSet has come out with their own prediction which states that according to their estimates Facebook’s DAUs were about to fall short of 1.7 billion people in the last quarter.
The reasons behind this sharp incline may have happened because of how Facebook also told that its North American DAUs went up to 198 million in the second quarter - from 195 million in the first one. However, in Europe the DAUs remained unchanged at 305 million.
Furthermore, Facebook has also reported 699 million Asian DAUs (second-quarter) against 678 million in the first one.
The monthly active users number stood at 2.7 billion which was slightly higher than 2.6 billion of the first quarter. As the numbers are extremely great, Facebook is now also aiming for more growth post the pandemic - mostly because of how users are getting back to the normal life in more developed markets gradually.
Despite being in front of House of Representatives antitrust subcommittee, Facebook has enjoyed a 6 percent increase in its stock rate and the shares closed down at $247.60 in after-market trading.
Read next: Facebook is bringing a refreshing app that has a nostalgic feel and will make you experience the old days of the internet again
With the numbers show in the report, Facebook’s stock price has also gone up in the after-market trading.
After releasing the report on Thursday, Facebook’s CEO Mark Zuckerberg also told that the revenue was up by 11% making up to $18.69 billion and the growth also helped the company earn $1.80 a share, a 98 percent increase on a year-on-year basis. This was much more than Facebook’s expectations as revealed by market data firm Refinitive who predicted that Facebook will report quarterly earnings of $1.39 a share and revenue of $17.4 billion.
"There are now more than 3.1 billion people using our services every month to stay connected and more than 180 million businesses who use our tools to connect with customers. We also had more than 9 million active advertisers across our services as many shifted their businesses online.", announced Mark Zuckerberg in a Facebook status update.Zuckerberg gave immense credit to his team for helping the small business continue to grow in times of crisis by introducing the right types of features and tools for them in quick successions just so that every business shouldn’t miss out on the opportunity to connect with the customers on a personal level. The company’s other fees numbers also stood at $366 million, up 40 percent from last year.
Considering the advertising recession in the broader economy and the backlash that Facebook had to face in the name of privacy issues and moderating offensive content, these financial numbers are extremely surprising.
From now onwards, the investors will also measure Facebook’s active user metrics too in order to analyze the balance sheet’s health. Facebook has reported 1.79 billion daily active users by the end of the second-quarter which is another increment when compared to 1.73 billion daily active users in the first one. While the company has been celebrating this win too, financial data firm FactSet has come out with their own prediction which states that according to their estimates Facebook’s DAUs were about to fall short of 1.7 billion people in the last quarter.
The reasons behind this sharp incline may have happened because of how Facebook also told that its North American DAUs went up to 198 million in the second quarter - from 195 million in the first one. However, in Europe the DAUs remained unchanged at 305 million.
Furthermore, Facebook has also reported 699 million Asian DAUs (second-quarter) against 678 million in the first one.
The monthly active users number stood at 2.7 billion which was slightly higher than 2.6 billion of the first quarter. As the numbers are extremely great, Facebook is now also aiming for more growth post the pandemic - mostly because of how users are getting back to the normal life in more developed markets gradually.
Despite being in front of House of Representatives antitrust subcommittee, Facebook has enjoyed a 6 percent increase in its stock rate and the shares closed down at $247.60 in after-market trading.
Read next: Facebook is bringing a refreshing app that has a nostalgic feel and will make you experience the old days of the internet again
