Facebook reported a slowdown in growth in the second quarter and said it expects the trend to continue in the rest of 2018. Revenues rose 42 percent year-on-year to USD 13.23 billion, compared to annual growth of 49 and 47 percent in the previous two quarters. The operating margin fell to 44 percent from 47 percent a year ago, while net profit was still up 31 percent to USD 5.11 billion or USD 1.07 per share.
Mobile advertising increased further to 91 percent of revenues. The social network's daily active users averaged 1.47 billion in June, up from 1.45 billion in the previous quarter and 11 percent higher year-on-year. Monthly active users also rose by 11 percent on an annual basis, to 2.23 billion from 2.20 billion in the previous quarter.
Capital expenditure jumped to USD 3.46 billion in the quarter, while Facebook's cash position dipped to USD 42.31 billion from USD USD 43.96 billion in March. Headcount was up 47 percent year-on-year to 30,275 employees.
According to CNBC, Facebook warned in a conference call with investors for a further slowdown. Revenue growth rates will decline in the "high single digits" during the second half of the year, and operating margins may drop to the mid 30s, as the company invests in new products and increased security measures, the management said. The weak results and outlook sent the company's share price 20 percent lower in after-hours trading.
