The social media giant, however, topped Wall Street estimates for the second quarter due to increased ad spending.
Facebook Inc said on Wednesday that it expects revenue growth in the third and fourth quarters of 2021 to “slow significantly”, causing the social media giant’s shares to fall about 5% as part of the extended exchanges.
The company topped Wall Street estimates for quarterly revenue, bolstered by rising ad spend as businesses ramp up their digital presence to cater to consumers spending more time and money online.
The company’s total revenue, which is mostly made up of advertising sales, reached $ 29.08 billion in the second quarter, from $ 18.69 billion a year earlier, beating analyst estimates by 27. $ 89 billion, according to IBES data from Refinitiv.
Facebook, like its peers, has seen increased demand for digital ads as the coronavirus pandemic has pushed consumers to buy largely online, forcing several companies to build online stores and marketplaces using media platforms. social.
Advertising revenue for the world’s largest social network rose 56% to $ 28.58 billion in the second quarter ended June 30, Facebook said.
The company said it expects Apple’s recent privacy change, forcing iPhone app developers to start asking users for permission to collect certain data for ads, to have an impact in the third. trimester. Facebook has argued that Apple’s recent requirement that iPhone app developers start asking for this permission would hurt its business and small businesses that depend on personalized advertising.
Monthly active users reached 2.90 billion, up 7% from the same period last year, but analysts are not expecting 2.92 billion and mark the weakest growth rate in at least three years, according to IBES data from Refinitiv.
Net income reached $ 10.4 billion, or $ 3.61 per share, from $ 5.18 billion, or $ 1.80 per share, a year earlier. Analysts had expected earnings of $ 3.03 per share.