facebook warns growth to decelerate significantly

Facebook said this month it would invest more than $1 billion to support content creators through the end of 2022. It is also on the offensive to attract top social media personalities and their fans, competing with Alphabet’s YouTube and short-video app TikTok, which recently hit 3 billion global downloads. The push will be key to how Facebook, which hosts more than 1 million online “Shops” on its main app and Instagram, can grow its ad business amid the impact of Apple’s changes. The world’s largest social network has been ramping up its ecommerce efforts, which are expected to bring additional revenue to the company and make its ad inventory more valuable. Analysts had expected a profit of $3.03 per share. Net income in the second quarter more than doubled to $10.4 billion, or $3.61 per share. “In the third and 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. It pointed to a 47% increase in price per ad. Its revenue from advertising rose 56% to $28.58 billion in the second quarter ended June 30, Facebook said. But importantly, Facebook is the most exposed to Apple’s privacy changes, and it looks like it is starting to have an impact to the outlook beginning in 3Q,” said Ygal Arounian, an analyst at Wedbush Securities.īrian Wieser, GroupM’s global president of business intelligence, said all social media companies would see slower growth in the second half of the year and that it would take more concrete warnings about activity in June and July for anyone to anticipate a “meaningful deceleration.”įacebook’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 to IBES data from Refinitiv.

“The user growth slowdown is notable and highlights the engagement challenges as the world opens up. Monthly active users came in at 2.90 billion, up 7% from the same period last year but missing analyst expectations of 2.92 billion and marking the slowest growth rate in at least three years, according to IBES data from Refinitiv. offices to be vaccinated against COVID-19, joining Alphabet Inc and Netflix. The company also announced on Wednesday that it would require anyone working at its U.S. Nasdaq 100 Vs Nasdaq Composite Index: Performance and differences – Explained

Facebook warns growth to decelerate significantly