3q digital, facebook posts record revenue despite ad boycott

July 28 (binhkhipho.vn) - Facebook Inc (FB.O) said on Wednesday it expects revenue growth lớn "decelerate significantly," sending the social truyền thông media giant's shares down 3.5% in extended trading even as it reported strong ad sales.

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The warning overshadowed the company's beat on Wall Street estimates for quarterly revenue, bolstered by increased advertising spending as businesses build their digital presence to cater to lớn consumers spending more time & money online.

Facebook said it expects Apple's (AAPL.O) recent update khổng lồ its iOS operating system to lớn impact its ability lớn target ads và therefore ad revenue in the third quarter. The iPhone maker's privacy changes make it harder for apps lớn traông chồng users and restrict advertisers from accessing valuable data for targeting ads.

The company also announced on Wednesday that it would require anyone working at its U.S. offices lớn be vaccinated against COVID-19, joining Alphabet Inc (GOOGL.O) và Netflix (NFLX.O). read more

Monthly active sầu users came in at 2.90 billion, up 7% from the same period last year but missing analyst expectations of 2.92 billion & marking the slowest growth rate in at least three years, according lớn IBES data from Refinitiv.

"The user growth slowdown is notable và highlights the engagement challenges as the world opens up. But importantly, Facebook is the most exposed lớn Apple's privacy changes, & it looks like it is starting lớn have sầu an impact to lớn the outlook beginning in 3Q," said Ygal Arounian, an analyst at Wedbush Securities.

Brian Wieser, GroupM's global president of business intelligence, said all social media companies would see slower growth in the second half of the year & that it would take more concrete warnings about activity in June and July for anyone to anticipate a "meaningful deceleration."

Facebook's total revenue, which primarily consists of ad sales, rose about 56% to $29.08 billion in the second quarter from $18.69 billion a year earlier, beating analysts' estimates, according khổng lồ IBES data from Refinitiv.

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Its revenue from advertising rose 56% to $28.58 billion in the second quarter ended June 30, Facebook said. It pointed to lớn a 47% increase in price per ad.


A Facebook panel is seen during the Cannes Lions International Festival of Creativity, in Cannes, France, June trăng tròn, 2018. binhkhipho.vn/Eric Gaillard/File Photo

"In the third & fourth quarters of 2021, we expect year-over-year total revenue growth rates to decelerate significantly on a sequential basis as we lap periods of increasingly strong growth," Chief Financial Officer Dave Wehner said in the earnings release.

Net income in the second quarter more than doubled khổng lồ $10.4 billion, or $3.61 per nội dung. Analysts had expected a profit of $3.03 per giới thiệu.

The world's largest social network has been ramping up its ecommerce efforts, which are expected to lớn bring additional revenue khổng lồ the company and make its ad inventory more valuable. The push will be key khổng lồ how Facebook, which hosts more than 1 million online "Shops" on its main tiện ích và Instagram, can grow its ad business amid the impact of Apple's changes.

It is also on the offensive sầu to attract top social media personalities and their fans, competing with Alphabet's YouTube and short-video ứng dụng TikTok, which recently hit 3 billion global downloads. Facebook said this month it would invest more than $1 billion to lớn tư vấn content creators through the end of 2022. read more

On a conference call with analysts, CEO Mark Zuckerberg also focused on another ambition for the company: the "metaverse."

Zuckerberg this week announced that Facebook, which has invested heavily in virtual reality & augmented reality, was setting up a team to lớn work on building a shared digital world, which he is betting will be the successor lớn the Smartphone internet. Microsoft (MSFT.O) also dropped the buzzy Silinhỏ Valley term on its earnings call this week, talking about its own plans for the converging digital & physical worlds. read more

"Facebook has its eye on a sci-fi prize," said Sophie Lund-Yates, equity analyst at Hargreaves Lansdown. "This is little more than an ambition for Facebook at the moment...if the idea comes khổng lồ fruition, it could be a valuable income source."

The company also continues to face pressure from global lawmakers and regulators, including from the U.S. Federal Trade Commission which has until Aug. 19 to lớn retệp tin its antitrust complaint against the company & from a group of states who said on Wednesday they would appeal the judge's dismissal of their lawsuit. Facebook's market cap hit $1 trillion for the first time last month when the judge threw out the original complaints. read more

The company, which has long been under fire from lawmakers over misinformation and other abuses on its apps, has also come under renewed scrutiny from President Joe Biden's administration over the handling of false claims about COVID-19. At Facebook's office in Washington, D.C., on Wednesday, a group of critics phối up an installation of body toàn thân bags to prokiểm tra the issue.

Reporting by Nivedita Balu in Bengaluru and Elizabeth Culliford in New York; Additional reporting by Danielle Kaye in Thành Phố New York and Sheila Dang in Dallas; Editing by Maju Samuel & Lisa Shumaker
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