Facebook on Thursday blew past market expectations for itssecond quarter, delivering strong top and bottom line results. While beating estimates, the social media giant's Q2 revenue growth was notably slower than it was in Q1. The company expects that growth rate to hold steady into Q3, as a result of the currentad boycottunderway and other factors.
Facebook's Q2 net income came to $5.2 billion, with earnings of $1.80 per diluted share. Revenue came to $18.69 billion, up 11 percent year-over-year.
Analysts were expecting earnings of $1.39 per share on revenue of $17.4 billion.
"We're glad to be able to provide small businesses the tools they need to grow and be successful online during these challenging times," CEO Mark Zuckerberg said in a statement. "And we're proud that people can rely on our services to stay connected when they can't always be together in person."
Facebook's daily active users were 1.79 billion on average for June 2020, an increase of 12 percent year-over-year. Its monthly active users totaled 2.7 billion as of June 30, an increase of 12 percent year-over-year.
The number of people active daily on at least one of Facebook's products -- including Facebook, Instagram, Messenger and WhatsApp -- was 2.47 billion on average for June, an increase of 15 percent year-over-year. Monthly active people for Facebook products was 3.14 billion as of June 30, an increase of 14 percent year-over-year.
In the first three weeks of the current quarter, Facebook's year-over-year ad revenue growth rate was approximately in-line with its Q2 growth rate of 10 percent. The start of Facebook's Q3 coincided with the launch of the#StopHateforProfitcampaign, a boycott meant to push the social network to do more to combat hate speech and misinformation. Hundreds of brands have publicly joined the boycott including Microsoft, Verizon, Volkswagen and Sony Interactive.
Facebook said that it expects its full Q3 ad revenue growth rate to remain around 10 percent, for a variety of reasons, including the ad boycott. The outlook also takes into account the continued macroeconomic uncertainty and changing user engagement levels due to the COVID-19 pandemic. It also considers headwinds related to ad targeting and measurement, including the impact of regulations like the California Consumer Privacy Act.
Analysts are expecting Q3 earnings of $1.71 on revenue of $19.05 billion.
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