Following are Facebooks key performance data for the second quarter of this year:
Facebooks second quarter revenue was $16.886 billion, up 28% from $13.231 billion in the same period last year, while analysts expected $16.5 billion.
Facebooks second-quarter operating profit was $4.626 billion, down 21% from $5.863 billion in the same period last year.
Facebooks operating profit margin in the second quarter was 27%, significantly lower than 44% in the same period last year.
Facebooks second-quarter net profit was $2.616 billion, down 49% from $5.106 billion in the same period last year.
Facebook earned $0.91 a share in the second quarter, down 48% from $1.74 a share in the same period last year.
As of June 30, 2019, Facebook had 1.59 billion active users per day, an 8% increase over the previous year, and 2.41 billion active users per month, both of which were in line with analystsexpectations.
Facebook has more than 2.1 billion active users a day in the second quarter and 2.7 billion active users a month, unchanged from last quarter.
Facebook is still adding users and advertising sales are exceeding analystsexpectations. This suggests that despite new regulatory constraints and criticism of its business model, the size and impact of the social network has so far not been hampered.
Facebook also disclosed in its earnings that the Federal Trade Commission (FTC) has launched a formal antitrust investigation into its business. In addition, just hours before the financial results were released, the company announced a $5 billion settlement with the FTC. The protocol does not require Facebook to change the way it collects data, nor does it require Facebook to change the way it uses personal information for targeted advertising. Facebook said it had allocated $2 billion in the latest quarter to cover the remainder of the settlement agreement after allocating $3 billion in the previous quarter.
The company also said Wednesday it would pay $100 million to settle charges by the Securities and Exchange Commission that it misled investors by misusing personal information. The U.S. Department of Justice has recently launched an investigation into potential violations of antitrust laws by Facebook and other large technology companies.
Mark Zuckerberg, Facebooks chief executive, said on a earnings conference call, We think there needs to be an appropriate regulatory framework. I am even more worried that if the regulatory framework is not in place, peoples dissatisfaction with the industry will probably grow stronger.
David Wehner, the companys chief financial officer, also pointed out that privacy protection does require huge investments in compliance processes, personnel and technological infrastructure. One of the impacts I want to point out is that this is also a redistribution of resources around privacy, which will also have an impact on our overall product development.
Despite regulatory pressure, Facebook is still trying to stay innovative. In June, the company announced plans for a new global encrypted currency called Libra. Libra quickly aroused strong dissatisfaction among politicians and regulators, and its executive, David Marcus, testified to congressional committees in Washington last week to explain the companys plans. Facebook now promises to pacify regulators before introducing encrypted currencies. (Lebanon)
Source: Responsible Editor of Netease Science and Technology Report: Wang Fengzhi_NT2541