Facebook’s profit surges 101 percent on strong ad sales.
Facebook said on Wednesday revenue rose 56% to $ 29 billion in the three months ending June compared to the same period last year, while profits rose 101% to 10.4 billion dollars, as the social network continues to benefit from increased user spending. more time online during the pandemic.
Ad revenue, which still makes up the bulk of Facebook’s revenue, rose 56% to $ 28.6 billion, far exceeding Wall Street expectations. About 3.51 billion people now use one of Facebook’s apps every month, up 12% from the previous year.
The results follow the company’s continued strong performance over the past 18 months as the pandemic has pushed people indoors to their computers and other devices. Facebook recorded high levels of users and revenue while continuing to expand its employee base and reinvest in infrastructure such as data centers. More than 63,000 people now work for Facebook full time, up 21% from the previous year.
As Facebook’s top properties, including the main Facebook app and Instagram, continue to see ad revenue rise, Facebook CEO Mark Zuckerberg predicts the company’s future growth, including investing in projects such as virtual reality and a next-generation computing platform. calls “the metaverse”.
“We had a strong quarter as we continue to help businesses grow and people stay connected,” Zuckerberg said. “I’m excited to see our major initiatives around the creators and community, commerce and building of the next IT platform come together to begin bringing the vision of the Metaverse to life. “
The company is also working to attract more content creators to Facebook and Instagram, a move to counter the success that platforms like YouTube and TikTok have had in attracting into the so-called creator economy.
Over the past few years, Facebook has seen influencers flock to other platforms and build businesses from their followers. Now Mr. Zuckerberg wants to build a similar model on his own properties, which could eventually lead to new sources of revenue for the company.
But Facebook executives have warned that earnings for the next few quarters may not be as promising. In a note to investors, Facebook said changes to the privacy of Apple’s mobile operating system could hurt the social network’s advertising activities. The company also noted that its rapid growth may not last, especially as more people are vaccinated and begin to venture out of their homes and away from their computers.
Investors appeared to back down from Facebook’s advice; Facebook shares fell 3.5% in after-hours trading.
Facebook also announced on Wednesday that it would require employees who work on one of the company’s U.S. campuses to be vaccinated, depending on local conditions and regulations. The move follows a similar policy announced earlier by Google and an announcement from Apple that it would delay the return of workers to the company’s offices until later in the year.
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