Facebook Q2 net profit increased by 101%, warning that the growth rate slowed down and fell nearly 5% after hours

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Tencent technology news on July 29, Facebook released its second quarter financial report of 2021 as of June 30 on Wednesday. According to the financial report, Facebook’s revenue in the second quarter was $29.077 billion, up 56% from $18.687 billion in the same period last year; The net profit was US $10.394 billion, an increase of 101% over US $5.178 billion in the same period last year.
Although Facebook’s second quarter results increased significantly and exceeded Wall Street expectations, its share price once fell 5% in after hours trading due to the company’s warning that revenue growth may slow in the future.
Executive comments
Mark Zuckerberg, founder and CEO of Facebook, said, “as we continue to help enterprises develop and keep in touch with people, the performance in the second quarter was very strong. I’m glad to see us come together around creators and communities, business and the main plan to build the next computing platform, and begin to turn the vision of the meta universe into reality. ”
Dave Wehner, chief financial officer of Facebook, said: “the growth of advertising revenue in the second quarter of 2021 was due to the year-on-year increase of 47% in the average price of each advertisement and 6% in the number of advertisements. Similar to the second quarter, we expect that in 2021, the growth of advertising revenue will be mainly driven by the year-on-year rise of advertising prices. ”
“In the third and fourth quarters of 2021, we expect the year-on-year growth rate of total revenue to slow down significantly because we will usher in a period of stronger and stronger growth. Novel coronavirus pneumonia recovery is expected to be affected by the growth of two years, and we expect that the growth of the two quarter gross revenue in the second half of 2021 will be slightly slower than the second quarter growth rate.
“We continue to expect that advertising targets from regulatory and platform changes will increase against the wind in 2021, especially the recent IOS update. We expect that the third quarter will have a greater impact than the second quarter. Our prospects take this into account. As pointed out in the recent earnings conference call, we will continue to focus on the feasibility of transatlantic data transmission and its potential impact on our European business. ”
“We expect total expenditure to be between $70 billion and $73 billion in 2021, unchanged from our previous forecasts. The year-on-year increase in expenditure was mainly driven by investment in technology and product talent, infrastructure and consumer hardware related costs. Our spending outlook reflects our commitment to investing ahead of the compelling long-term growth opportunities we see in our portfolio. Capital expenditure is expected to be between $19 billion and $21 billion in 2021, which is the same as our previous estimates. Our capital expenditure is mainly driven by investments in data centers, servers, network infrastructure and office facilities. We expect the tax rate to be around 10% for the whole year of 2021. ”
Main results in the second quarter:
–Facebook’s total revenue in the second quarter was $29.077 billion, up 56% from $18.687 billion in the same period last year;
–Facebook’s advertising revenue in the second quarter was $28.58 billion, up 56% from $18.321 billion in the same period last year; Other revenue was US $497 million, an increase of 36% over US $366 million in the same period last year;
–The total cost and expenditure of Facebook in the second quarter was US $16.71 billion, an increase of 31% over US $12.724 billion in the same period last year;
–Facebook’s operating profit in the second quarter was US $12.367 billion, an increase of 107% over US $5.963 billion in the same period last year;
–Facebook’s operating profit margin in the second quarter was 43%, compared with 32% in the same period last year;
–Facebook’s net profit in the second quarter was US $10.394 billion, an increase of 101% over US $5.178 billion in the same period last year;
–Facebook’s diluted earnings per share in the second quarter were $3.61, compared with $1.80 in the same period last year.
Key operating points and other financial data in the second quarter:
–In June 2021, the average number of daily active users of Facebook was 1.91 billion, an increase of 7% over the same period last year;
–As of June 30, 2021, the average number of monthly active users of Facebook was 2.9 billion, an increase of 7% over the same period last year;
–In June 2021, the average daily active users of Facebook’s family products were 2.76 billion, an increase of 12% over the same period last year;
–As of June 30, 2021, the average number of monthly active users of Facebook family products was 3.51 billion, an increase of 12% over the same period last year;
–Facebook’s capital expenditure in the second quarter was $4.74 billion;
–By the end of the second quarter of 2021, the total amount of cash, cash equivalents and securities held by Facebook was US $64.08 billion;
–As of June 30, 2021, Facebook had 634040 employees, an increase of 21% over the same period last year.
Second quarter financial analysis:
Revenue:
Facebook’s total revenue in the second quarter was $29.077 billion, up 56% from $18.687 billion in the same period last year. Among them, the advertising revenue of acebook in the second quarter was US $28.58 billion, an increase of 56% over US $18.321 billion in the same period last year; Other revenue was $497 million, up 36% from $366 million in the same period last year.
Costs and expenses:

Facebook’s total costs and expenses in the second quarter were $16.71 billion, up 31% from $12.724 billion in the same period last year. Among them, the revenue cost was US $5.399 billion, compared with us $3.829 billion in the same period last year; Facebook’s R & D expenditure in the second quarter was $6.096 billion, compared with $4.462 billion in the same period last year; Marketing and sales expenses were US $3.259 billion, compared with us $2.84 billion in the same period last year; General and management expenditure was $1956 million, compared with $1593 million in the same period last year.
Operating profit:
Facebook’s operating profit in the second quarter was US $12.367 billion, an increase of 107% over US $5.963 billion in the same period last year; Facebook’s operating profit margin in the second quarter was 43%, compared with 32% in the same period last year.
Net profit:
Facebook’s second quarter net profit was $10.394 billion, up 101% from $5.178 billion in the same period last year. Facebook’s diluted earnings per share in the second quarter were $3.61, compared with $1.80 in the same period last year.
Capex:
Facebook’s second quarter capital expenditure was $4.74 billion.
Balance sheet: as of the end of the second quarter of 2021, the total amount of cash, cash equivalents and marketable securities held by Facebook was US $64.08 billion
Comparison with analysts’ expectations
Facebook’s revenue in the second quarter was $29.077 billion, up 56% from $18.687 billion in the same period last year; Diluted earnings per share for the second quarter was $3.61. Facebook’s second quarter results were better than market expectations. According to a Thomson Reuters survey, market analysts had expected Facebook’s diluted earnings per share to be $3.02 and revenue to be $27.82 billion in the second quarter.
Stock price performance
Facebook shares rose $5.47, or 1.47%, to close at $373.28 in regular trading on the Nasdaq stock market on Wednesday. At press time, Facebook shares fell $16.05, or 4.30%, to $357.23 in after hours trading. In the past 52 weeks, Facebook’s lowest share price was $229.00 and its highest share price was $377.52. According to Wednesday’s closing price, Facebook has a market value of about $1.058 trillion´╝ł Tencent Technology (compiled / Mowgli)