Facebook Tops Consensus - Sees Growth Slowdown
July 29, 2021
Facebook reported financial results for the quarter ended June 30, 2021.
The firm had earnings of $3.61 per share, adjusted with only $3.03 per share as
expected. As to revenue, Facebook took in $29.08 billion with $27.89 billion set
by the consensus.
"We had a strong quarter as we continue to help businesses grow and people stay
connected," said Mark Zuckerberg, Facebook founder and CEO. "I'm excited to see
our major initiatives around creators and community, commerce, and building the
next computing platform coming together to start to bring the vision of the
metaverse to life."
Second Quarter 2021 Operational and Other
Facebook daily active users (DAUs) – DAUs were 1.91 billion on average for
June 2021, an increase of 7% year-over-year.
Facebook monthly active users (MAUs) –
MAUs were 2.90 billion as of June 30, 2021, an increase of 7% year-over-year.
Family daily active people (DAP) – DAP was
2.76 billion on average for June 2021, an increase of 12% year-over-year.
Family monthly active people (MAP) – MAP
was 3.51 billion as of June 30, 2021, an increase of 12% year-over-year.
Capital expenditures – Capital
expenditures, including principal payments on finance leases, were $4.74 billion
for the second quarter of 2021.
Cash and cash equivalents and marketable
securities – Cash and cash equivalents and marketable securities were $64.08
billion as of June 30, 2021.
Headcount – Headcount was 63,404 as of
June 30, 2021, an increase of 21% year-over-year.
CFO Outlook Commentary
Advertising revenue growth in the second quarter of 2021 was driven by a 47%
year-over-year increase in the average price per ad and a 6% increase in the
number of ads delivered. Similar to the second quarter, we expect that
advertising revenue growth will be driven primarily by year-over-year
advertising price increases during the rest of 2021.
In the third and fourth quarters of 2021, we expect year-over-year total revenue
growth rates to decelerate significantly on a sequential basis as we lap periods
of increasingly strong growth. When viewing growth on a two-year basis to
exclude the impacts from lapping the COVID-19 recovery, we expect
year-over-two-year total revenue growth to decelerate modestly in the second
half of 2021 compared to the second quarter growth rate.
continue to expect increased ad targeting headwinds in 2021 from regulatory and
platform changes, notably the recent iOS updates, which we expect to have a
greater impact in the third quarter compared to the second quarter. This is
factored into our outlook.
As noted in recent earnings calls, we continue to monitor developments regarding
the viability of transatlantic data transfers and their potential impact on our
We expect 2021 total expenses to be in the range of $70-73 billion, unchanged
from our prior outlook. The year-over-year growth in expenses is driven
primarily by investments in technical and product talent, infrastructure, and
consumer hardware-related costs. Our expense outlook reflects our commitment to
invest ahead of the compelling long-term growth opportunities we see across our
We expect 2021 capital expenditures to be in the range of $19-21 billion,
unchanged from our prior estimate. Our capital expenditures are driven primarily
by our investments in data centers, servers, network infrastructure, and office