Social media giant, Facebook, earnings earnings and buyout
As part of Monday’s extended trading, Facebook shares rose more than 3% after the company posted better-than-expected earnings even as earnings fell below analysts’ expectations.
A $ 50 billion increase for Facebook’s share buyback program was also announced.
Starting in the fourth quarter, Facebook will separate Reality Labs into a separate reporting segment.
In this segment, Facebook will offer hardware, augmented reality and VR products. The company’s family of apps, including Facebook, Instagram, Messenger, WhatsApp and others, will contribute to the other revenue segment.
Due to its investments in hardware and virtual reality, Facebook expects operating profit to decline by around $ 10 billion in 2021.
The company announced in July that there would be a new team dedicated to the Metaverse, a 3D environment in which multiple people can interact.
In 2022, Facebook announced that Bosworth, who currently heads its hardware division, will become the company’s chief technology officer.
According to Facebook, revenue grew 35% year-over-year, while profits rose 17% to $ 9.2 billion from $ 7.8 billion.
In the fourth quarter, the company expects revenue to be between $ 31.5 billion and $ 34 billion.
Analysts had expected revenue of $ 34.8 billion. In its forecast, Facebook noted, “We face significant uncertainty in the fourth quarter due to Apple’s iOS 14 updates, macroeconomic conditions, and COVID-related factors.”
It was announced earlier this year that Apple is adding prompts to its apps that allow users to avoid being targeted by ads. After the company accused the iOS changes of disrupting its business in its earnings report last week, Snap shares plunged 27%.
Facebook’s “other” segment, which includes consumer hardware like Oculus virtual reality headsets, generated $ 734 million in revenue, up 195% and more than the consensus estimate of $ 477 million.
The number of monthly users of the Facebook family of apps reached 3.58 billion in the third quarter, up from 3.51 billion in the second quarter. Facebook uses this metric to measure the total number of users on its main app, Instagram, Messenger, and WhatsApp.
196 million daily active users have been reported in the United States and Canada, where Facebook generates higher revenue per user than in other regions. At the end of the second quarter, there were 308 million people in Europe.
This article originally appeared on FX Empire