Meanwhile, ad revenue in Q3 is expected to stay at the 10 percent growth level recorded in Q2 and the year before. This comes against the backdrop of continued macroeconomic uncertainty and declining engagement, as well as the advertising boycott against Facebook. Over 300 companies have paused their ad spend as a way to put pressure on the company to better tackle hate speech. Ad revenue will also get affected by regulatory headwinds related to ad targeting and measurement. The California Consumer Privacy Act as well as expected changes to mobile operating platforms are expected to have a significant effect as the year progresses.
Revenues in Q2 rose 11 percent to USD 18.687 billion, with the operating profit jumping 29 percent to USD 5.963 billion and the net profit doubling to USD 5.178 billion from 2.616 billion. Diluted earnings per share rose to USD 1.80 from 0.91. Total costs and expenses rose 4 percent to USD 12.724 billion while the tax rate slivered to 16 percent from 46 percent.
The number of daily active users increased 12 percent to 1.79 billion in June, from 1.73 billion in the previous quarter. Monthly active users advanced 12 percent in the year to 2.70 billion from 2.70 billion quarter-on-quarter.
The 'family' of services - Facebook, Instagram, WhatsApp and Messenger - attracted around 2.47 billion people per day on average in June, up 15 percent from the year earlier and compared to 2.36 billion in March. Per month, the number lifted to 3.14 billion, up 14 percent year-on-ytear and from 2.99 billion in the previous quarter.
Capex for Q2 reached USD 3.36 billion while the company’s cash position went to USD 58.24 billion, from 60.29 billion at end March. Headcount climbed 32 percent from the year before to 52,534, from 48,268 in Q1.
