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Facebook quarterly profit tops $9 billion amid damning headlines

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Facebook reported Monday Revenue of $ 29 billion during the three months ended September, 33% more than the same period last year. The company posted nearly $ 9.2 billion in profits, 17% more than the previous year.

The results were almost in line with the projections of Wall Street analysts. from Facebook (FB) Shares rose more than 3% in out-of-hours trading on Monday following the earnings report.
The results come in the middle perhaps the biggest crisis in the 17-year history of the social media giant. Tens of thousands of pages of internal documents leaked by whistleblower Frances Haugen reported in the Wall Street Journal’s “Facebook Files” series on Monday, an avalanche of additional news coverage by a consortium of 17 northern news organizations. as well as hearings with U.S. and UK lawmakers. The documents offer an in-depth look at many of Facebook’s biggest problems to date, including its struggles to regulate hate speech and misinformation, the use of its platform by human traffickers, the research on harm to young people and more. (Facebook has dismissed many of the reports, saying they are misleading and misrepresent their investigations and actions.)

Still, Facebook is no stranger to public relations crises. In most cases, Facebook’s business has continued to move at a healthy pace despite protests from regulators and the public.

But this time it could be different. Facebook’s massive advertising business is already in a vulnerable state due to recent changes to Apple’s app tracking rules. Apple’s iOS 14.5 software update, which went into effect in April, requires users to give explicit permission for apps to track their behavior and sell their personal data, such as age, location, spending habits, and health information, to advertisers. Facebook has aggressively rejected the changes and warned investors last year that the upgrade could hurt their business if many users choose not to follow up.

On Monday, Facebook warned that iOS 14 changes could create “continued headwinds” in the fourth quarter of 2021.

While much of the world spent the day focusing on Facebook’s actual damage, the company hinted at investors in the report that it wants them to look forward, not backward. Starting in the fourth quarter, the company plans to break down Facebook Reality Labs, its division dedicated to augmented and virtual reality services, as a separate reporting segment from its app family, which includes Instagram, WhatsApp and the network. homonymous social of Facebook.

Chief Financial Officer Dave Wehner said Facebook is investing so much in this new division that it will reduce “our overall operating profit by 2021 by approximately $ 10 billion.”

In a statement with the results, Facebook CEO and co-founder Mark Zuckerberg also focused on the following: “I’m excited about our roadmap, especially when it comes to creators, commerce and helping build the metavers “.

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