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Facebook revenue continues to be on rise as the pandemic tightens grip

Facebook revenue continues to be on rise as the pandemic tightens grip - Appy Pie

Daily users of Facebook have increased to 1.79 billion that is 12 percent year-over-year. Monthly usage across the company’s others apps like Instagram and WhatsAp saw a rise by 14 percent, to 3.14 billion. Facebook also saw ad-based based business rising. The company’s revenue witnessed 11 percent rise year-over-year, to USD 18.69 billion.

Daily users of all Facebook’s apps, along with Instagram and WhatsApp, averaged 2.36 billion in March, up from 2.26 billion in December. Facebook’s core social network now has 1.73 billion daily users, compared with 1.66 billion during the final month of 2019.

Facebook CEO Mark Zuckerberg said in a statement, “We’re glad to be able to provide small businesses the tools they need to grow and be successful online during these challenging times, and we’re proud that people can rely on our services to stay connected when they can’t always be together in person.”

While Facebook has flourished during the pandemic lockdown and closures, its growth is still lower than that of other tech giants. Facebook did better than Alphabet, as its revenue declined 2 percent year-over-year. Amazon’s revenue grew 40 percent to USD 89 billion.

Facebook could up its revenue even with the help of millions of small businesses that rely on it for direct-response advertising. However, Facebook’s core advertising business may take a serious hit come next quarter.

Despite the fact that Facebook’s revenue was up overall by 18 percent year-over-year this past quarter, beating analysts’ expectations, much of that time period did not include the peak impact of the pandemic.

Facebook in the first three weeks of July, showed revenue growth that was roughly in line with its second-quarter growth rate of 10 percent.

For now, however, Facebook’s key numbers are impressive. The company reported revenue of USD 17.7 billion and a profit of USD 4.9 billion, 18 percent, and 102 percent jump from this time last year, respectively. The number of people who log into Facebook daily jumped 11 percent from Q1 2019 to 1.7 billion, while the number of monthly active users increased by 10 percent to 2.6 billion.

However, the company clearly is aware that its popularity is likely only temporary. Facebook CEO Mark Zuckerberg, “We don’t monetize many of the services where we’re seeing increased engagement, and we’ve seen a weakening in our ads business in countries taking aggressive actions to reduce the spread of COVID-19, We’re just trying to keep the lights on over here. Given the strong engagement growth and related demands on our infrastructure, this year’s capex reduction should be viewed as a deferral into 2021 rather than savings.”

The company warned that increased engagement may not last once the COVID-19 pandemic begins to subside. “More recently, we are seeing signs of normalization in user growth and engagement as shelter‑in-place measures have eased around the world, particularly in developed markets where Facebook’s penetration is higher,” the company said.

Facebook has USD 58.24 billion in cash and cash equivalents on hand, the company said. It now has 52,534 employees, up 32 percent from a year earlier.

The company said in a statement, “Our business has been impacted by the COVID-19 pandemic and, like all companies; we are facing a period of unprecedented uncertainty in our business outlook.”