Facebook Announces High Profits Amid Leakage of Internal Documents – Business – Tecnoblog

Amidst reports made from leaked documents, rumors of a change of name and promises of a metaverse, Facebook presented its financial results this Monday (25). The social networking giant had net income of $9.2 billion for the quarter ended Sept. 30, 2021, up 17% from the same period last year.

Facebook App (Image: Thomas Sokolowski/Unsplash)

The number of monthly active users reached 2.91 billion, an increase of 6% compared to 2020. This increase was also registered in daily active users: 1.93 billion. The presentation shows that growth is mainly outside the US, Canada and Europe, where numbers have been virtually stagnant since early 2021.

In other figures, Facebook had $29 billion in total revenue, up 35% from the year-ago quarter. Earnings per share were $3.22. Revenues were below analysts’ expectations, but the result per paper beat market bets, which expected this metric to remain at US$ 3.19. Facebook shares were up 2% in trading after the market closed.

It is noteworthy that the company paid more taxes this quarter. While the effective rate in the three months prior to September 30, 2020 was 4%, that for the same period this year reached 13%. The company had to provision $1.37 billion to pay taxes, 378% more than a year earlier. According to a note in the earnings report, the low effective rate in 2020 was because of a $913 million benefit to amortize spending on research in development.

Facebook site on mobile (Image: Solen Feyissa/Unsplash)
Facebook site on mobile (Image: Solen Feyissa/Unsplash)

Apple’s pro-privacy policy did not affect Facebook

The financial results of this Monday (25) are the first released by Facebook after Apple implemented in iOS a change in activity tracking — now, users need to give consent for apps to have access to what they do on their smartphones.

Zuckerberg said the change did not affect Facebook’s business, “but it did affect small businesses.” In previous reports, the company has shown some apprehension about the iPhone maker’s new policy as it is an obstacle to targeting ads.

app facebook icone iphone ios tecnoblog
Facebook on mobile (Image: Tecnoblog)

Profit through Facebook Papers

The positive financial results come amid yet another moment of public scrutiny on the social media giant. A consortium of press vehicles is producing a series of articles from a batch of internal company documents. The set has been called Facebook Papers and was leaked through the hands of former employee Frances Haugen.

The reports published this Monday (25) revealed that the company recognizes the negative effects of its platforms for young people, its dominance in strategic areas of social media and the insufficiency of artificial intelligence to moderate content.

The platform would have even been exploited for trafficking in persons in the Middle East, inciting violence against ethnic minorities in Ethiopia and recruiting gunmen for a drug cartel in Mexico, with an insufficient response from the company to curb this type of practice. .

Mark Zuckerberg, CEO of Facebook (Image: Anthony Quintano/Flickr)
Mark Zuckerberg, CEO of Facebook (Image: Anthony Quintano/Flickr)

In the investor call, CEO Mark Zuckerberg called the work and allegations an “organized operation to spread misleading information and paint a wrong view of our company.” He advocated a regulation for social media to define the limits of what can and cannot be shared across platforms.

It’s not the first time Facebook has been at the center of public debate because of scandals. In 2018, the revelation that Cambridge Analytica used data from the social network to microtarget political ads. The episode has led to criticism of how the company treats users’ privacy.

Zuckerberg has also had to testify in Congress to explain how the platform deals with fake news and lies in political ads, as well as monopoly charges against Facebook and other big techs.

Facebook bracelet takes movements to augmented reality (Image: disclosure/Facebook)
Facebook bracelet takes movements to augmented reality (Image: disclosure/Facebook)

The name remains the same (for now)

Last week, a rumor circulated that Facebook could change its name. The measure would be a way to reflect the new focus of the company, which is now engaged in creating a digital environment mediated by augmented reality and virtual reality, called metaverse. The new project will include 10,000 jobs in Europe over the next five years.

Thus, “Facebook” would be just the name of one of the properties of a company with another baptism. It’s more or less similar to what happened at Google in 2015, which became a subsidiary of Alphabet, the holding that controls this and other companies.

So far, the name remains the same, but the metaverse is still mentioned. In this Monday’s call, Zuckerberg announced that the next financial statement will have separate results for Reality Labs, the company’s arm focused on developing new technologies. The CEO also promised to give more details about the company’s next venture on Thursday (28).

“This investment will not be profitable for us in the coming years, but we believe that this is the future of mobile internet”, said the executive.

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