Facebook, which may soon be rebranded, may struggle a bit as its finances recover from backlash caused by whistleblowers and the Facebook paper. The company missed its earnings forecast for the third quarter of 2021 and fell below the forecast revenue range.
The company’s share price rose slightly after the announcement.
Facebook’s total revenue is estimated at $29.01 billion (35% year-over-year), earnings per share of $3.22 (diluted basis), and $3.19 per share (diluted). Was told it was (Aadhaar). 19% increase from the previous year). In addition, Facebook had 1.93 billion daily active users (DAUs) (same as estimated), but monthly active users (MAUs) were 2.91 billion, down from an estimated 2.93 billion. Average revenue per user was $10, less than the expected $10.15.
Facebook also reported an operating margin of 36% and an effective tax rate of 13% for the third quarter of this year. Finally, its cash and cash equivalents and marketable securities stood at $58.08 billion in the third quarter of 2021.
Facebook has announced that it will add $50 billion to its share repurchase program and provide guidance for the final quarter of this year, which includes revenues of $31.5 billion to $34 billion. In addition, 2021 total costs are expected to be between $70-71 billion, and 2022 total costs to be in the range of $91-97 billion, driven by investments in technology and product talent. I said. infrastructure related costs.
Similarly, Facebook expects annual capital investment to be around $19 billion and $29-34 billion by 2022. He said the company’s outlook reflects “significant uncertainty” from Apple’s iOS 14 changes and macroeconomic and COVID-related factors.
Facebook further talked about its plans for the final quarter of this year, saying it would beat Reality Labs (FRL) as another reporting segment and invest more resources in AR and VR products and services. This means that from the next quarter, Facebook will have two segments.
The first segment, Facebook’s app family, which includes revenue from Facebook, Instagram and WhatsApp, and the second segment, Facebook’s Reality Labs, have scaled up hardware, software, and content related to virtual reality. involve. The company expects its investment in FRL to reduce overall operating profit by about $10 billion in 2021.
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