Facebook Q3 Earnings Takeaways: Revenue Miss, Weak Guidance, New Names For 2 Units

8 months ago 91

Social media elephantine Facebook Inc. reported third-quarter fiscal results aft marketplace adjacent Monday.

Here are the cardinal takeaways from the report.

What Happened

Facebook reported third-quarter gross of $29 billion, up 35 percent year-over-year. The gross full was shy of analysts’ estimates of $29.6 billion.

Advertising gross for the institution was $28.3 billion, up 33 percent year-over-year. The company’s different concern conception had gross of $734 million, up 195 percent year-over-year.

Facebook’s net per stock of $3.22 bushed the Street statement of $3.19.

The institution reported regular progressive users of 1.93 cardinal and monthly progressive users of 2.91 billion, some up 6 percent year-over-year.

What’s Next

Facebook is guiding for fourth-quarter gross to beryllium successful a scope of $31.5 cardinal to $34 billion, shy of Street estimates of $34.9 billion.

The third-quarter miss and fourth-quarter guidance travel comments made successful the company’s second-quarter study connected the 2nd fractional seeing decelerated maturation owed to pugnacious comp periods from the anterior year.

“When viewing maturation connected a two-year ground to exclude the impacts from lapping the COVID-19 recovery, we expect year-over-year two-year full gross maturation to decelerate modestly successful the 2nd fractional of 2021 compared to the 2nd 4th maturation rate,” the institution said astatine the time.

Going forward, Facebook volition interruption retired its Facebook Reality Labs arsenic a abstracted reporting segment, opening with the 4th quarter.

“We are dedicating important resources toward our augmented and virtual world products and services, which are an important portion of our enactment to make the adjacent procreation of societal experiences,” the institution said.

Facebook Reality Labs volition see augmented and virtual world hardware, bundle and content. The concern successful this caller portion could trim operating nett successful 2021 by $10 billion, the institution said.

The different reporting portion volition beryllium Family of Apps, which includes Facebook, Instagram, Messenger, WhatsApp and different services.

Price Action

Facebook shares are up 3.7 percent to $341 successful after-hours trading connected Monday.

By Chris Katje

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