The financial data of the Q2 2020 Facebook help us to better understand some of the dynamics that have characterized the interventions of Zuckerberg in the course of the hearing at the US Congress last Wednesday. Yes, because one of the many questions posed to the CEO of the company’s Menlo Park concerning the growing group of companies that have decided to boycott the social group Facebook to the cry of the slogan Stop Hate, for Profit, and it sounded more or less like this: really you can afford to ignore the fact that your partner you are turning your back?
Looking at the financial results shared in the last hour – but, above all, the projections for the next quarter – it seems that the answer to this question is a net yes. The company has recorded revenues record in the field of advertising, to reach a total of 18,32 billion, against the 16,61 2019. This is a +10% on an annual basis, which testifies to the good health of the company in this field, however this data does not cover the month of July, during which the boycott has begun to enter in the alive.
Facebook still wanted to talk about the first 3 weeks of July, on a separate note – just to get to the heart of the matter and to dispel any doubt – claiming to have recorded even in that case, a revenue growth of 10% compared to last year. In short, unless things do not change radically in the next few months, it seems that all the protest movement will not bring any harm to the company, which continues to exhibit the accounts active and in good health.
The total revenues for the Q2 2020 amount to 18,68 billion dollars (against 16,88 2019) and the profit has reached $ 5,17 billion dollars: this is an increase of 98% compared to 2.61 billion in the last period of the previous year. Also the dividends paid per share have seen the same growth, to reach a total of 1.8 dollars per share (12 months ago were to 0.91). The number of active users per day Facebook amounted to 1.79 billion people (+12%), while that of those who use the apps of the ecosystem, FB get to 2.5 billion.
If so not even the threats of major brands such as Sony, Coca-Cola, Unilever, Verizon and many others have managed to intimidate the colossus of Menlo Park, what can it be? According to recent statements by CFO David Wehner, it seems that the next threat to the growth of Facebook may come from a completely different direction: it is, in fact, iOS 14.
The next version of the operating system of Apple, in fact, it introduces a new system of privacy protection that blocks the tracking of the user’s data as it passes from one app to the other, asking him to give their explicit consent so that these data can be collected.
Considering that iOS 14 will be installed on all the next iPhone and the high rate of typical update of the platform, Facebook is concerned that these new policies may interfere heavily with the business model of the company, and then with advertising revenues, by expecting the Q4 of 2020 may show a contraction caused by the diffusion of iOS 14, as many users may refuse to consent to the processing of data.
The company stresses that this kind of advertising is vital for small businesses that operate on Facebook, especially in this period of strong crisis.