Facebook Chairman and CEO Mark Zuckerberg.
Erin Scott | Reuters
Facebook stock price was up more than 1% on Monday after the company reported its third-quarter earnings despite missing analysts’s expectations for revenue and monthly active users.
Here are the results.
- Earnings: $3.22 vs $3.19 per share expected by analysts, according to Refinitiv.
- Revenue: $29.01 billion vs $29.57 billion expected by analysts, according to Refinitiv.
- Daily active users (DAUs): 1.93 billion vs. 1.93 billion expected by analysts, according to StreetAccount.
- Monthly active users (MAUs): 2.91 billion vs. 2.93 billion expected by analysts, according to StreetAccount.
Wall Street is also watching several other key numbers from Facebook.
- Average revenue per user (ARPU): $10.15 expected by analysts, according to StreetAccount.
The company announced its plans to break out its Facebook Reality Labs into its own reporting segment starting in the fourth quarter. That unit focuses on hardware, augmented reality and virtual reality products.
With revenue growth forecast to hit 37% in the latest quarter, Facebook is showing it can continue to make an increasing amount of money off its massive user base
But all the recent attention on Facebook stems from a series of reports, initially from The Wall Street Journal, regarding internal research released by former employee Frances Haugen.
Haugen initially shared some of the documents she acquired during her time at Facebook with the Journal, and she then appeared in front of a Senate panel earlier this month to testify about her experiences at the company. Since then, Haugen has released the documents to several more news outlets, leading to additional news articles.
The reports show that Facebook is aware of many of the harms its apps and services cause but either doesn’t rectify the issues or struggles to address them. More documents are expected to be shared daily over the coming weeks.
Since Haugen began leaking documents and testifying, another whistleblower has submitted an affidavit with allegations about Facebook’s behavior, and previous whistleblower Sophie Zhang has again spoken up against the company.
Facebook’s call with analysts on Monday afternoon will be the first time CEO Mark Zuckerberg speaks publicly since Haugen began releasing documents. Zuckerberg addressed some of the claims made by Haugen and the Journal in a Facebook post on Oct. 5.
Investors may have additional reasons for concern about the company’s financials.
Rival social media app Snap reported third-quarter earnings last week, and fell short of revenue expectations while also issuing disappointing fourth-quarter guidance. Snap said privacy changes Apple introduced to the iPhone operating system earlier this year disrupted the company’s advertising business. Global supply chain interruptions and labor shortages also reduced demand for advertising, Snap told investors.