Facebook recorded record quarterly revenue on Wednesday, surpassing analysts’ expectations as the company entered e-commerce during the coronavirus blockade.
Social media group revenue increased 33% to $ 28.1 billion in the fourth quarter, surpassing analysts’ expectations of $ 26.4 billion. Net income increased 53% to $ 11.2 billion, or $ 3.88 per share.
In a statement, the company’s chief financial officer, David Wener, said “a continuous shift to online commerce” and “a shift in consumer demand to products and services” will boost business. Said it was done.
According to Facebook, monthly active users were 2.8 billion, up 12% year-on-year.
Last year, the company made a big bet on “social commerce” on all apps as people withdrew indoors under the restrictions of shelter-in-place. Launched Facebook Shops. This allows businesses to set up digital storefronts and payment tools in several markets.
Still, the company’s efforts to integrate the messaging capabilities of the three apps Facebook, WhatsApp, and Instagram to drive more shopping weren’t seamless. This month’s WhatsApp has been forced to delay the release of updated policies, the changes raise privacy concerns, and users share more transaction data with Facebook after flocking to lesser-known rival apps. It is now possible.
Wehner expects the company to be affected by Apple’s new iOS 14 privacy changes, allowing the app to collect ad targeting and tracking data “from the second half of the first quarter” of 2021. He said he needed to get it. He hurt his business and lobbied for updates because of his impact on small business clients.
Jessica Liu, a senior analyst at Forrester, said: “Hyper-targeting, which makes Facebook properties very attractive to advertisers, doesn’t go away overnight, but it gets harder and harder. Facebook, Inc needs to rethink their advertising model.”
Facebook also faces significant legal and regulatory challenges. The Federal Trade Commission and 46 states in the United States filed an antitrust lawsuit against the company last month for exercising control over the company to break the competition.
Its content moderation policy and process have been scrutinized after the Capitol riots earlier this month, and criticisms have also been raised over the decision to suspend former President Donald Trump’s account “indefinitely.”
E-commerce push during a pandemic boosts Facebook revenue
Source link E-commerce push during a pandemic boosts Facebook revenue