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Home / Technology / Facebook reports slower than expected 2Q revenue growth

Facebook reports slower than expected 2Q revenue growth



NEW YORK – It's a scratch in the Teflon coating in Facebook.

The social network user base and revenue grew slower than expected in the second quarter, when the company resigned with privacy issues and sent shares tumbling after hours. [19659002] The company also announced that it expects revenue growth to slow down in the next couple of quarters, as it promotes new and now less profitable products – such as the history's disappearing message function. It also allows users to make "multiple choices" around data security in connection with public outbreaks and regulatory pressures.

Revenue covered the company's first full quarters since the Cambridge Analytics privacy scandal broke out. However, analysts are attributed to the user growth network to a large extent to European privacy rules that came into force in May, not to the fate of the political consulting firm with ties to President Donald Trump, who mistakenly gained access to data from tens of millions of Facebook users.

One hour before trading began Thursday, stocks had thrown more than 1

9 percent, picking around 17 billion dollars in net worth out of pocket to Facebook founder Mark Zuckerberg.

Yet, the results show that Facebook may have weathered the scandal without major damage to its business, even though the public image has taken a hit. While revenue was less than Wall Street estimates, it made only about 1 percent; surplus exceeded forecasts.

But Facebook continues to seize major existential issues, ranging from user privacy to technical dependence on what it's all about false news and misinformation, hate speech and extremism at its service.

At times, Facebook seems to be unable to fully determine where the values ​​really are. For example, it continues to break up the line between police what users say and remain a neutral platform in a constantly shared world, and between protecting privacy while gathering as much information about its users as possible.

Facebook had 2.23 billion monthly users as of 30 June, up 11 percent from the previous year. Analysts expected 2,25 billion dollars, according to FactSet. User growth – on a monthly and daily basis – was flat in the United States and the rest of North America, while it fell slightly in Europe.

Facebook is largely saturated in the United States and Western Europe, and now looks like countries like Brazil, India and Indonesia for new users. However, revenue from these regions is far below what Facebook is raining from the US and Europe.

The company earned $ 5.1 billion, or $ 1.74 per share, up 31 percent and above analysts' estimate of $ 1.71.

But revenues – up 42 percent to $ 13.23 billion – were slightly below the $ 13.34 that Wall Street expected.

Facebook said the European Data Protection Regulations, called the General Data Protection Regulation, or GDPR did not have a major impact on quarterly earnings, but also noted that they were only in use for about a month before the end of the quarter.

In the long term, GDPR may endorse Facebook and other large companies that have the resources to adapt to new requirements. They may also have disadvantage for smaller, less well-known companies that do not have the resources to comply and who can face large fines if they do not.

A flash point for Facebook has been Instagram, the image converter it bought for $ 1 billion in 2012. Instagram now has over 1 billion users and analysts expect it to be a model for how Facebook crashes its other major app purchases, WhatsApp , for a lucrative business. So far, WhatsApp does not show ads, and founders Jan Koum and Brian Acton left Facebook among disagreements about advertising and other issues.

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