Facebook’s announces strong Q2 results: revenue up 56%

Facebook announced strong Q2 results on Wednesday with YOY revenue increase of 56%.

  • Facebook daily active users (DAUs) – DAUs were 1.91 billion on average for June 2021, an increase of 7% year-over-year. 
  • Facebook monthly active users (MAUs) – MAUs were 2.90 billion as of June 30, 2021, an increase of 7% year-over-year. 
  • Family daily active people (DAP) – DAP was 2.76 billion on average for June 2021, an increase of 12% year-over-year. 
  • Family monthly active people (MAP) – MAP was 3.51 billion as of June 30, 2021, an increase of 12% year-over-year. 
  • Capital expenditures – Capital expenditures, including principal payments on finance leases, were $4.74 billion for the second quarter of 2021. 
  • Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $64.08 billion as of June 30, 2021. 
  • Headcount – Headcount was 63,404 as of June 30, 2021, an increase of 21% year-over-year.

“We had a strong quarter as we continue to help businesses grow and people stay connected,”

“I’m excited to see our major initiatives around creators and community, commerce, and building the next computing platform coming together to start to bring the vision of the metaverse to life.”  

Mark Zuckerberg, Facebook founder and CEO

Here’s what analysts expected, in line with estimates sourced by Visible Alpha 

  • Earnings: $2.99 per share anticipated 
  • Revenue: $27.9 billion anticipated 
  • Monthly Active Users: 2.9 billion  

Earnings History:  

Facebook Inc. (FB) is experiencing massive revenue and user growth rate YOY. With more than 10 million active advertisers, Facebook continues to rule in the online advertising space. The social media company is doling out new programs and building revolutionary technologies to woo the users to build on its success.  

In Q1 this year, Facebook delivered solid earnings, and the stock rose 6% after hours. The company’s revenue increased by 48% at $26.17 billion for the quarter. It attributed its revenue growth to a 30% increase in the average price per ad and a 12% rise in the number of ads shown. Net income grew 94% to $9.5 billion, from $4.9 billion a year prior. 

In Q4 FY 2020, Facebook easily beat analysts’ earnings and revenue forecasts. The company’s EPS increased 51.7% compared to the year-ago quarter.  

Facebook’s stocks have been extremely volatile in the past. It is only since late March; the stocks began to outpace the market.  

Annual forecast:

For full-year FY 2021, analysts predict the number of Monthly Active Users (MAU) to rise 6.0%, bringing the total number of MAUs to approximately 3.0 billion. For full-year FY 2021, analysts estimate that EPS will rise 29.1%, slowing from last year’s pace of 57.1%. Revenue is expected to grow 34.7%, which would be the fastest pace since FY 2018. 

Facebook defines an MAU as a registered and logged-in user who visited Facebook through its website or a mobile device or used its Messenger app sometime during the 30 days of the measurement period. 

Plans  

Facebook announced its plans to invest over $1 billion to reward creators for the great content they create on Facebook and Instagram through 2022. In a post last week, Facebook CEO Mark Zuckerberg said, “Investing in creators isn’t new for us, but I’m excited to expand this work overtime.” Facebook will also provide “seed funding” to help creators produce content. Simultaneously, Facebook is creating a product team to work on the “metaverse,” a digital world where people can move between different devices and communicate in a virtual environment.  

The company also reaffirmed its intention to create an Instagram for kids aged under 13, despite pressure from lawmakers to back down on the plan.  

More updates to follow. Watch out for this space.  

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