People used Facebook more while spending time at home due to coronavirus. The details of the financial report announced by the social network giant reveal this situation.
The number of daily Facebook users increased by 12 percent year on year to 1.79 billion. The number of people using apps including Instagram and WhatsApp increased by 14 percent to 3.14 billion. Facebook’s advertising-based business has also grown with this increase in usage. The company’s revenues increased by 11 percent year on year to $ 18.69 billion.
“We are delighted to be able to provide small businesses with the tools they need to grow and succeed online,” said Mark Zuckerberg, CEO of Facebook. said. “We are also proud that people can always rely on our services to stay connected when they can’t be together.”
While Facebook has increased during the pandemic, its growth rate has remained below other tech giants. For example, according to Amazon’s financial report released on Thursday, the company generated $ 89 billion in revenue during the same period, an increase of 40 percent. Thus, the analysts’ estimates exceeded $ 8 billion. Still, Facebook did a better job than Alphabet, whose revenue fell by 2 percent year on year.
Another reason why the numbers are impressive is that Facebook was boycotted by top level advertisers in early July. Large companies, including Coca-Cola, Lego, Starbucks, and Unilever, pulled their ads from Facebook and other social networks. Companies are directed to Facebook by groups of civil rights advocates; He had taken this step after charges that he had not taken the necessary steps to stop the spread of hate speech.
Facebook managed to increase its revenues thanks to millions of small businesses, even without the ads of major brands. Facebook said that the increase in income in the first three weeks of July is roughly in line with the growth rate of 10 percent of the second quarter. This shows that the company is not affected by the boycott.
As in the last quarter, the company warned that the increased usage will not continue in line with the Kovid-19 pandemic as the effects begin to decrease. “Recently, we’ve seen signs of normalization in user growth and participation, as home-keeping measures have eased around the world, especially in developed markets with higher penetration of Facebook.”
The company expressed its expectations that the usage will follow a horizontal course or decrease slightly in the next quarter.
Facebook’s safe has $ 58.24 billion in cash or cash. The company currently has 52,553 employees. This item also recorded an increase of 32 percent year on year.