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The social-media company’s second-quarter earnings report Wednesday showed that advertisers’ greater focus over the past year on reaching consumers online continues to be a tailwind. Analysts also said the parent of Facebook, Instagram and WhatsApp continued to benefit from a rise in consumers making purchases from brands directly through its apps.
Facebook’s profit doubled from a year earlier to $10.39 billion, or $3.61 a share, soundly beating analysts’ expectations. Revenue rose 56% to $29.08 billion.
Facebook has previously warned that the impact of Apple Inc.’s privacy changes in its iOS operating system could crimp the company’s ad-targeting capabilities. Wednesday, the company said the changes could have a more significant impact in the current quarter than the previous one, as more people update their iPhones and iPads.
While Facebook reported 3.5 billion monthly users across its platforms in the latest quarter, the company still sees itself in a growth mode and wants to expand revenue streams beyond its core advertising business.
On an earnings call with analysts, Facebook Chief Executive Mark Zuckerberg said the second quarter was good “for our product and business.” He devoted the rest of his opening remarks to plans to invest more in content creators, improve commerce features and build a metaverse—what he described as a social, digital environment unlike any that currently exists.
Facebook’s financial results come as Google parent Alphabet Inc. on Tuesday reported its best quarter ever for sales and profit, bolstered by a strong digital advertising market. Last week, Snap Inc. said its revenue more than doubled in the second quarter and user growth jumped the most in four years, while Twitter Inc. said sales rose 74% and that it swung to a profit from a year earlier.
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