The company's total revenue, which primarily consists of ad sales, rose to $29.08 billion in the second quarter from $18.69 billion a year earlier, beating analysts' estimates of $27.89 billion, according to IBES data from Refinitiv.įacebook, like its peers, has seen increased demand for digital ads as the pandemic drove consumers to shop largely online, forcing several businesses to create online stores and markets using social media platforms.
Its revenue from advertising rose 56% to $28.58 billion in the second quarter ended June 30, Facebook said. It pointed to a 47% increase in price per ad. "In the third and fourth quarters of 2021, we expect year-over-year total revenue growth rates to decelerate significantly on a sequential basis as we lap periods of increasingly strong growth," Chief Financial Officer Dave Wehner said in the earnings release. The world's largest social network has been ramping up its ecommerce efforts, which are expected to bring additional revenue to the company and make its ad inventory more valuable. The push will be key to how Facebook, which hosts more than 1 million online "Shops" on its main app and Instagram, can grow its ad business amid the impact of Apple's changes. It is also on the offensive to attract top social media personalities and their fans, competing with platforms like Alphabet's YouTube and short-video app TikTok, which recently hit 3 billion global downloads. Facebook said this month it would invest more than $1 billion to support content creators through the end of 2022.
Net income in the second quarter more than doubled to $10.4 billion, or $3.61 per share, from $5.18 billion, or $1.80 per share, a year earlier. Jesse Cohen, senior analyst at, called it a "blockbuster quarter" for Facebook but warned: "Growing regulatory concerns and mounting antitrust scrutiny will be major headwinds for Facebook in the months ahead as the Biden administration has made it clear it wants to rein in big tech." Analysts had expected a profit of $3.03 per share. The company continues to face pressure from global lawmakers and regulators, including from the U.S. Federal Trade Commission which has until Aug.
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