Facebook's profits are increasing, but it warns of a slowdown



Facebook shares fell 5% after the social media company warned of slowing revenue growth in the coming quarters. This came with the announcement of second quarter results. Revenue reached $ 29.08 billion. The number of daily active users reached 1.91 billion. While the number of monthly active users has reached 2.90 billion.

Facebook's revenue grew 56% per year in the second quarter, the fastest growth since 2016. The company noted an average increase in the price of ads of 47%, as well as a 6% increase in the number  of advertisements disseminated. Revenue from Facebook's other segment, including consumer devices such as virtual reality glasses, was $ 497 million, up 36%.


For the second half of the year, Facebook said it expects its overall annual revenue growth rates to slow significantly on a sequential basis, with periods of increasingly strong growth.

 In the second quarter, the company said it had 3.51 billion monthly users on its app suite, up from 3.45 billion in the first quarter. This metric is used to measure the company's total user base on its main app, WhatsApp, Messenger, and Instagram.


 In the United States and Canada, where the company generates more revenue per user than other regions, Facebook reported 195 million daily active users. It's the same as what happened in the first trimester. The number in Europe fell sequentially to 307 million from 309 million in the first quarter.

Facebook warns of slowdown

 CEO Mark Zuckerberg spoke about the company's goal to help develop the Metaverse. which he described as a virtual environment where you can be with people in digital spaces.The comments came two days after Facebook announced the formation of a team working on Metaverse.

 "I expect people in the coming years will move from our vision as a social media company to our vision as a Metaverse company," Zuckerberg said.

 Zuckerberg's vision of metaverses requires a sense of being in a virtual world. Which is why the company is investing heavily in the Oculus division to build the necessary hardware.

Zuckerberg said he believes Facebook may also be able to make money from Metaverse. This is done through the sale of digital goods and experiences.

 The company stated that it expects to increase ad targeting in 2021. This is due to regulatory changes and changes related to the platform. Especially the recent iOS updates. Furthermore, the company's chief financial officer said: We expect a greater impact from iOS 14.5 in the third quarter than in the second quarter.

 

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