Facebook has warned that its revenue for the current quarter will be further slashed by changes to Apple’s privacy, the latest hurdle for the social media company in an ongoing public relations crisis due to leaks of internal documents.
Facebook said Monday that revenue for the three months to the end of December would be between $ 31.5bn- bn 34bn, citing “uninterrupted headwinds” from Apple’s requirement for apps to have explicit permission to track users for ad targeting purposes. Analysts forecast a .8 34.8 billion jump, according to S&P Capital IQ.
Revenue for the third quarter rose 35 percent to $ 29.01 billion, contrary to consensus expectations of $ 29.5 billion. The number of monthly active users grew 6 percent year-over-year to 2.91 billion, slightly lower than the consensus estimate of 2.98 billion.
Facebook’s revenue at a glance
Original Guess vs.
Revenue: 29.01 billion Vs. 29.5 billion
Net income: 19 9.19 billion Vs. 9.16 billion
EPS: $ 3.22 Vs. $ 3.17
Ad sales: .2 28.27 billion Vs. 29.02 billion
Monthly active users: 2.91 billion Vs. 2.98 billion
Sources for estimates: S&P Capital IQ and Refinitive
The latest earnings report comes at a time when Facebook is battling a stream of negative press coverage, after numerous journalists turned from ex-employees to whistleblowers after accessing thousands of pages of leaked documents.
Together, the documents highlight the company’s struggle to prevent misinformation and hate speech on the platform, as well as the challenges of growing its young user population.
Facebook added that since the fourth quarter, it plans to release results for its Facebook Reality Labs unit, which makes its virtual and augmented reality products, from the rest of the business. It said the recent push to invest in FRL is expected to reduce its 2021 operating profit by about $ 10bn.
The company has announced that it will increase its share buyback program by 50 billion.