Technology

Facebook does better than expected in Q2

Facebook CEO Mark Zuckerberg (Photo: Getty images)

Pandemic or not, Facebook saw its revenue grow 11% in the second quarter, to $ 18.7 billion, according to its results released Thursday.

The social media giant has accustomed the markets to more spectacular revenue growth, but in times of pandemic it still exceeds analyst expectations by a billion.

Its stock took 7% during electronic exchanges after the close of the stock market.

Net profit has almost doubled to more than $ 5 billion, thanks to the favorable comparison with that published in July 2019 when the social network had to pay a record fine imposed by the American authorities.

A year later, Facebook is still the subject of fierce criticism from governments and civil society. Regulators have been investigating its economic model for a year, both at the federal level and in the US states.

But the months of confinement, which heavily affected the global economy, have generally benefited digital platforms, especially in terms of use.

The network created by Mark Zuckerberg is now used by nearly 1.8 billion people on a daily basis, or 12% more over one year.

Its family of applications (Facebook, Instagram and Messenger and WhatsApp) reach 3.14 billion people every month (+ 14%).

These numbers are a testament to its good health because user data is the engine of the platform, which collects it to build consumer profiles and sell ultra-targeted ads on a large scale.

During the health crisis, the network also worked hard to diversify in terms of communication tools, especially video.

It has also stepped up efforts to attract SMEs.

“Many SMEs continue to struggle to stay alive and have reduced their marketing budgets,” says Debra Aho Williamson of eMarketer.

“It will take several months to find out whether Facebook’s efforts to get these companies to use its shopping-related tools are bearing fruit and leading SMEs to spend more on advertising on the platform.”

Facebook is currently boycotted by hundreds of companies, after recommendations from associations that consider the platform too lax in terms of moderation of hate content.

But the effects of the boycott, no doubt limited, will not be felt until the third quarter.

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