Zuckerberg doesn’t just see roses and flowers for Facebook
Facebook reported better-than-expected quarterly results but warned of slowing growth
Record earnings for the quarter for Facebook, but outlook disappoints.
The social giant founded by Mark Zuckerberg has announced that it has finished the second quarter of the year with better than expected profits and revenues.
Facebook reported quarterly revenues of $ 29 billion (+ 56%) and net profits of $ 10.4 billion.
However, the group expects a slowdown in the second half of the year. Active users of the platform are now 2.9 billion, up 7%, the company's slowest growth in years.
And the stock slid to -5% in Wall Street afterhours trading after the company said it expects a slowdown in revenue growth in the coming quarters.
All the details on the quarterly.
GROWING TURNOVER
The turnover reached 29.08 billion in the period that compares with the 27.93 billion dollars of the consensus. It is therefore growing by 56% on an annual basis, to the record since 2016, accelerating after the + 48% in the first quarter of 2021.
WELL THE PROFIT
In the second quarter, Facebook's earnings per share stood at $ 3.61 per share on an adjusted basis, better than the 3.03 per share expected by analysts.
In detail, the profits were equal to 10.39 billion dollars.
USERS INCREASE …
Daily active users rose 7% to an average of 1.91 billion, as expected. Monthly active users stood at 2.90 billion, up from an estimated 2.91 billion. Average revenue per user was $ 10.12, versus $ 9.66 expected. The American giant has announced that it has concluded the second quarter with a number of monthly users of its main APPs, Instagram, Messenger and Whatsapp, equal to 3.51 billion, up from 3.45 billion in the first quarter.
THEY GO DOWN IN EUROPE
In the United States and Canada, where Facebook generates the highest average revenue per user than in other regions, the group had 195 million daily active users, as well as in the first quarter. In Europe, the number fell from 309 million in the first quarter to 307 million.
WHAT WILL HAPPEN TO GROWTH ACCORDING TO FACEBOOK
As we said at the beginning, users continue to increase for the social network giant, but only by 7%. It is in fact the slowest growth of the company in years. Additionally, Facebook has warned that sales growth will slow significantly for the rest of the year as well.
“The growth rates of total revenue, on an annual basis, will decelerate significantly sequentially after periods of continuous growth at a solid pace,” the Menlo Park group said.
FAULT OF APPLE?
According to Finimize , this may have something to do with Apple's recent privacy changes, which have made it harder for advertisers on Facebook to target iOS users, in turn denting one of its most profitable sources of revenue.
THE METAVERSO PROJECT
During the conference call with analysts, Zuckerberg also spoke about the company's goal of participating in the development of a metaverse.
Zuckerberg's comments came two days after Facebook announced plans to form a team that will work on the metaverse . "In the next few years, I expect people to move from seeing us as a social media company to seeing us as a metaverse company."
WITH ADVERTISING AT THE CENTER OF BUSINESS MODEL
Ads, Zuckeberg added, will be a significant part of the metaverse, as Facebook doesn't want the metaverse to be too expensive. Zuckerberg's vision, notes a Cnbc article, requires the real person to feel their presence in a virtual world, and that is why the group is investing significantly in its Oculus division: users who want to experience the concreteness of virtual world will have to have the right tools at their disposal.
Zuckerberg also said he believes Facebook will be able to make money from the metaverse business through the sale of digital assets and experiences.
ABOUT VACCINES
Finally, in communicating its quarterly, Facebook has also given instructions to employees, stating that all those who want to return to work in the office will have to be vaccinated. And that "the way we implement this decision will depend on local conditions and regulations". The news came after Google CEO Sundar Pichai had informed employees in the previous hours of his choice to postpone plans for the return of the workforce to the office by a month, due to the rapid spread of the Delta variant. Pichai also confirmed that anyone who returns to work will need to be vaccinated.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/perche-zuckerberg-non-vede-per-facebook-solo-rose-e-fiori/ on Thu, 29 Jul 2021 12:05:44 +0000.