In the context: Facebook’s latest financials have been released, and it looks like the company is doing surprisingly well given the storm of bad press it has been receiving over the past few weeks. In fact, the stock rallied after the close, which means that investors are not worried about the social giant’s mid to long term future.
For the three months ended September, Facebook recorded revenues were $ 29 billion, up 35 percent from last year. Net income reached US $ 9.19 billion and earnings per diluted share were US $ 3.22. For the record, analysts expected revenues of $ 29.58 billion and earnings of $ 3.19 per diluted share.
Advertising revenue for the quarter was $ 28.28 billion, up 33 percent from the same period last year. Facebook aggregates all other revenue streams, such as consumer hardware revenue and developer fees, into the Other category, which generated $ 734 million in the third quarter, nearly triple the same period last year.
Facebook also saw a rise in its daily active users to 1.93 billion on average in September, up six percent from the same month in 2020. If we look at the bigger picture, daily active users across all Facebook products, including Instagram, Facebook, WhatsApp and Messenger, averaged 2.91 billion last month – an 11 percent increase over last year. There were 3.58 billion monthly active users, up 12 percent from last year.
The company says Apple’s app tracking transparency changes in iOS and iPadOS 14.5 and later have already had a financial impact, and that impact will continue into the next quarter.
In its next financial statement, the company will split its revenue and operating income into two segments – Family of Apps and Facebook Reality Labs. Facebook plans to devote significant resources to the latter segment, which is why it has warned investors that its total operating income will decline by $ 10 billion by 2021.
During a phone call, Facebook CEO Mark Zuckerberg gave his take on the latest wave of criticism and criticism that has swept Facebook. He noted that “Conscientious criticism helps us get better. But I believe we are seeing a coordinated effort to selectively use leaked documents to create a false picture of our company. The reality is that we have an open culture where we encourage discussion and exploration of our work so that we can make progress on many complex issues that are not unique to us. ”
Whatever one may say, but it seems that investors are not in the least worried about the stains on the public image of Facebook. Meanwhile, the company says it will refocus its efforts on serving young users and building the metaverse. We have heard that the company also wants to change its name to reflect this renewed strategy, and will add 10,000 “highly skilled” jobs in the EU over the next five years to help develop VR and AR experiences.