[Asia Economy Reporter Yujin Cho] The world's largest social media company, Facebook, posted second-quarter earnings that exceeded Wall Street expectations.
On the 28th (local time), Facebook announced in its Q2 earnings report that revenue reached $29.077 billion (approximately 33.5548 trillion KRW), a 56% increase compared to the same period last year ($18.687 billion). This surpassed Wall Street estimates of $27.81 billion.
Net income was recorded at $10.394 billion, a 101% increase from $5.178 billion in the same period last year. Earnings per share also reached $3.61, exceeding market estimates of $3.03.
This strong performance was driven by advertising revenue. Q2 advertising revenue increased by 47% compared to the same period last year. Other revenue, including hardware such as virtual reality (VR) Oculus, rose by 36%.
Benefiting from the COVID-19 pandemic, Facebook's average monthly active users (MAU) in Q2 reached 2.9 billion, and daily active users (DAU) reached 1.91 billion, each representing about a 7% increase compared to the same period last year.
However, Facebook expects revenue growth to slow down from the second half of this year. In its earnings materials, Facebook stated, "The impact on advertising revenue from Apple's mobile operating system (iOS) update will begin to be strongly reflected starting in Q3."
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