Facebook reported higher sales and earnings in the second quarter, but took a cautious tone going forward, anticipating that its growth could stagnate as Apple’s new rules reduce data collection on mobile devices and ad earnings decline. driven by the pandemic.
The company reported that its revenue increased 56% to $ 29.1 billion, higher than the $ 27.9 billion forecast by the market.
In addition, the social network reported 1,910 million daily active users.
Meanwhile, net earnings more than doubled to $ 10.4 billion, or $ 3.61 per share. Analysts were forecasting $ 3.02 a share.
In the same period last year, earnings were $ 5.180 million, or $ 1.80 per share.
The company, which also owns Instagram and WhatsApp, has benefited from pandemic lockdowns as users flock to its networks to connect with friends and enjoy entertainment at home.
Companies, from large consumer brands to family stores, shifted more of their advertising budgets to Facebook sites and other digital media to reach more customers while they stay at home to prevent the spread of COVID-19.
However, Facebook has said for several quarters that its advertising business faces risks from the recent update to Apple’s iOS software, which asks users of each application if they are willing to allow their activity to be followed over the internet.
Apple’s changes will have a bigger impact in the third quarter, Facebook CFO Dave Wehner said in the statement.
Across the industry, users choose to give apps permission to track their behavior only 25 percent of the time, according to Branch, a platform that tracks the growth of mobile apps.
Lower following makes it difficult for Facebook and other online businesses to tailor their ads to help firms find their most promising customers.
Facebook has argued that Apple’s new privacy rules will hurt small businesses that rely on targeted advertising and have no money to spend on broader marketing campaigns. Small businesses make up the majority of social network ad sales.
The company, which has come under increasing regulatory scrutiny in recent years over its content policies, social media market dominance, and privacy practices, scored a recent victory on that front, though it still faces the challenge. possibility of antitrust agents looking to break up your business.
Last month, Facebook won a court ruling to dismiss two monopoly lawsuits filed by the US Federal Trade Commission and a coalition of states seeking to split the company.
The firm’s shares fell as much as 5.2 percent in after-hours trading on Wednesday.
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