Facebook's revenue increased 56% year-on-year and grew at the fastest pace since 2016, but the outlook is unclear due to 'headwinds of Apple's advertising strategy', and we will focus on the virtual space 'Metaverse' in the future
Facebook announced its second quarter 2021 results on July 28, 2021. According to this financial report, the company's sales in the April-June period increased 56% year-on-year to $ 29.1 billion (about 3.2 trillion yen), achieving the fastest growth since 2016. However, it is expected to slow down sharply in the future due to regulations and a review of Apple's privacy measures.
Facebook --Facebook Reports Second Quarter 2021 Results
Facebook (FB) earnings Q2 2021
https://www.cnbc.com/2021/07/28/facebook-fb-earnings-q2-2021.html
Below are the financial highlights of the second quarter of 2021 financial results announced by Facebook on July 28. Gross revenue for the quarter increased 56% year-on-year to $ 29.1 billion, driven by significant growth in ad revenue due to a 47% year-over-year increase in ad unit prices and a 6% increase in ad delivery.
According to financial statements, Facebook's daily active users (DAU) in June 2021 averaged 1.91 billion, up 7% year-on-year, and monthly active users (MAU) was 2.9 billion as of the end of June. The usage of SNS was also strong, up 7% from the same period of the previous year.
On the other hand, Facebook said, 'By 2021, we anticipate that changes in regulations and advertising platforms, especially the headwinds of ad targeting due to recent iOS updates, will increase, and the impact will be greater than this term. As a result, we expect growth to slow significantly year-over-year in the third and fourth quarters of 2021, 'he said, cautious about the outlook.
The 'iOS update' mentioned by Facebook is Apple's privacy enhancement that requires advertising companies to require prior permission from users to use IDFA , the advertising identifier for iOS users. The impact of this change on Facebook's advertising business is summarized in detail in the article below.
What was the real impact of Apple's increased privacy panicking Facebook and advertisers? --GIGAZINE
Facebook is trying to steer into new businesses as advertising revenue is expected to decline significantly in the future. On July 26, 2021, Facebook's vice president of VR and AR products, Andrew Bosworth, 'formed a team specializing in Facebook's new virtual space, Metaverse.' Was announced on Facebook.
According to Facebook CEO Mark Zuckerberg, the Metaverse being developed by Facebook is 'a virtual environment where people can spend time together in a digital space.' To achieve this, Facebook has invested heavily in its VR device, Oculus, and plans to make money from digital products and services traded in the VR space within the Metaverse after the Metaverse is completed. ..
'In the next few years, people will see us as a Metaverse company rather than a social media company,' Zuckerberg said in a conference call explaining his performance to investors.
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