Facebook Q2 Profit Nearly Doubles as Monthly Active Users Top 3 Billion

Andrew Cummings
August 4, 2020

In the first three weeks of July, the company said ad revenues were in line with its second quarter growth rate of 10%, although monthly and daily active users are expected to be flat or slightly lower in the coming three months.

Facebook expected as much as half of its employees to be working from home on a long-term basis in the next five to ten years. Facebook's advertising-based business has also grown with this increase in usage.

The leading social network said it made a profit of $5.2 billion on $18.7 billion in revenue in the recently ended quarter, as the number of people using the platform monthly rose to 2.7 billion. MAUs for Facebook stood at 2.7 Billion, up from the 2.6 Billion that the industry had estimated. Alphabet's quarterly sales fell for the first time in its 16 years as a public company.

Revenue jumped 11% to $18.7 billion, compared with the $17.3-billion average analyst projection.

Facebook CEO Mark Zuckerberg speaks via video conference during the House Judiciary Subcommittee on Antitrust, Commercial and Administrative Law hearing on Online Platforms and Market Power in the Rayburn House office Building, July 29, 2020 on Capitol Hill in Washington, DC.

Zuckerberg said he was "troubled" by calls for regulators to make it more hard to target advertising, saying such a move would hurt businesses trying to connect with customers, especially during economic turmoil. If ad targeting were significantly restricted, he said, "this would reduce opportunity for small businesses so much that it would probably be felt at a macroeconomic level. Is that really what policymakers want in the middle of a pandemic in recession?"

Across its collection of applications including Instagram, WhatsApp, and Messenger, the USA conglomerate boasted 3.14 billion monthly users versus 2.99 billion in the first quarter.

As mentioned earlier, several small and medium businesses moved their operations online amid the health crisis and used Facebook to provide services to existing customers and reach out to new ones.

The boycott aimed at pressing Facebook to act on toxic and hateful content has the support of more than 900 companies and organizations.

According to Facebook, its business has been impacted by the COVID-19 pandemic and is facing a period of unprecedented uncertainty in business outlook. Although some were among Facebook's biggest individual spenders, the bulk of Facebook's ad revenue comes from small businesses.

Facebook faced questions on competition and its purchase of Instagram.

"Although Facebook doesn't release details about Instagram's revenue, we believe that Instagram has been a rapidly growing contributor to the company's total revenue, and that its success is helping to buoy Facebook as a whole", she said.

Facebook Inc. powered through the throes of the pandemic, as the social-media giant's revenue rose in the second quarter thanks to increased engagement from users. From a marketer perspective, despite some brands participating in the Stop Hate for Profit boycott, overall adoption for Facebook remains high. Looking ahead, we expect innovations like Facebook Shops to bring further commercial intent and conversion to the platform.

Other reports by iNewsToday