Facebook reported strong results in the second quarter, but it was helped by Apple not rolling out iOS 14.5 and its more stringent privacy permissions until April 26. Chief financial officer David Wehner acknowledged the company is bracing for the “headwinds” to come. (Adweek)
Facebook’s profit doubled from a year earlier to $10.39 billion, or $3.61 a share, soundly beating analysts’ expectations. Revenue rose 56 percent to $29.08 billion. (WSJ)
It’s the fastest growth since 2016, accelerating from a 48 percent increase in the prior quarter. The company pointed to a 47 percent rise in average price per ad, along with a 6 percent increase in the number of ads it delivered. (CNBC)
Daily users across Facebook, Instagram, and WhatsApp increased 12 percent from the same time last year to 2.76 billion. Non-advertising revenue—namely sales of the Oculus Quest VR headset—grew at a more modest rate of 36 percent. And Apple’s new ad tracking prompt for iPhone apps didn’t materially hurt ad revenue like some expected, though Facebook indicated that the worst is ahead. (The Verge)
The company warned that revenue will “decelerate significantly” on a sequential basis in the second half as the Covid-19 recovery continues. It also anticipates increased ad targeting headwinds in 2021 from regulatory and platform changes—notably the recent iOS updates, which it expects to have a greater impact in the third quarter compared to the second quarter. (Deadline)