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Facebook Q2 2020 Report Shows Revenue And Active Users Surpassed Estimate

Thanks to the pandemic, Facebook has been able to beat its estimated revenue and number of users by just about fractions. Despite recent woes that afflicted the social media giant, it still managed to satisfy investors.

 

According to details from the company’s earnings call on Thursday 30th July 2020, Facebook made a revenue of $18.69 billion during Q2 2020. It had estimated that its revenue will be $17.31 billion originally.

 

Also, its number of daily users during the period was 1.79 billion; while it reported that 2.7 billion people used its service every month between April and June 2020.

 

Likely, the pandemic had contributed to this. More people found themselves using Facebook more to try and reach their loved ones. The platform has also been getting a series of new features that encouraged users to stay.

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Its most popular new feature is the Messenger Rooms that can accommodate up to 50 people on video calls. This became important as many people needed to communicate in groups at the height of lockdown restrictions.

 

Facebook even acknowledged in a statement; “Looking forward, as shelter-in-place restrictions continue to ease, we expect the number of Facebook DAUs and MAUs to be flat or slightly down in most regions in the third quarter of 2020 compared to the second quarter of 2020.

 

In addition, it said that its ads revenue during the first three weeks of July 2020 had grown by 10%. This is significant as the month of June saw many corporate organisations boycott ads spending on the platform.

 

If boycotts from top brands like Unilever, Coca-Cola, Ford Motor, Spotify, Disney and so on had not hurt Facebook much; then, the company may have deeper ads revenue roots than previously thought. Although Yahoo Finance reports that the 10% growth in ad revenue was a decrease from its 17% increase in Q1 2020.

 

There could be more trouble ahead for Facebook after its CEO, Mark Zuckerberg, had faced a grilling in front of the antitrust committee. Rumours are that Facebook could be mandated to split up some of its businesses soon.

 

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Onwuasoanya Obinna

A reader of books and stringer of words. Passionate about Science and Tech. When not writing or reading he is surfing the web and Tweeting.

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