Facebook reported an annual 17 per cent jump in third-quarter net profit, driven by an increase in daily active users and strong advertising sales despite the platform facing multiple controversies that have led to calls for tighter regulation.
Net profit surged to $9.2 billion in the three months to the end of September. The company's net profit was down more than 11.5 per cent on a quarterly basis.
Revenue during the period rose 35 per cent to more than $29bn, missing average $29.6bn estimates made by analysts, according to Refinitiv.
“We made good progress this quarter and our community continues to grow,” Facebook’s founder and chief executive Mark Zuckerberg said.
Facebook and its billionaire founder have come under increasing criticism over the company’s practices and policies since whistleblower Frances Haugen spoke before Congress on October 5.
Ms Haugen, who began working for the company in 2019 and resigned in April 2021, has leaked thousands of internal documents to the Securities and Exchange Commission, Congress and several news outlets.
The former Facebook employee told a Senate commerce subcommittee hearing that Facebook algorithms promote posts with high levels of engagement, often pushing harmful or divisive content to users.
“My view is that what we are seeing is a co-ordinated effort to selectively use leaked documents to paint a false picture of our company,” Mr Zuckerberg said in a call with analysts.
“The reality is social media is not the main driver of these issues and probably can’t fix them by itself either,” he said.
The company's advertising sales, which jumped 33 per cent, contributed about $28.3bn to the company’s overall revenue. Revenue from other streams — including consumer hardware — rose 195 per cent on an annual basis to $734m.
Facebook’s stock rose about 2.8 per cent to $338 a share in after-hours trading. Its shares have gained almost 19 per cent in the past 12 months and close to 22 per cent since the start of this year.
In its financial guidance for the fourth quarter, Facebook expects total revenue to hover in the range of $31.5bn to $34bn.
The company’s outlook reflects the “significant uncertainty” it faced in the October-December period considering continued headwinds from Apple's iOS 14 changes and Covid-related challenges, Facebook’s chief financial officer David Wehner said.
Apple’s update to its operating system is intended to make it harder for advertisers to track people as they rotate between different apps on their device.
Users are given the choice to opt in or out of app tracking. This will restrict how technology companies such as Facebook and Google gather data for advertising purposes.
Facebook's daily active user base grew 6 per cent on an annualised basis to reach more than 1.93 billion in the previous quarter. Its monthly active users increased 6 per cent yearly to 2.91 billion.
The platform's capital expenditure, including principal payments on finance leases, in the third quarter was $4.5bn. It is expected to reach $19bn for the 2021 full financial year and stay in the range of $29bn to $34bn for the 2022 financial year, driven by the company’s investments in data centres, servers, network infrastructure and new office facilities.
The company has reduced the guidance of the 2021 financial year’s total expenses that will stay in the range of $70bn to $71bn from the earlier expectations of $70bn to $73bn.
It expects its full-year 2022 total expenses to be in the range of $91bn to $97bn, driven by investments in technical and product talent and infrastructure-related costs, said Mr Wehner.
Facebook saw an annual 20 per cent increase in headcounts in the third quarter to 68,177. Its cash and cash equivalents and marketable securities were more than $58bn as of September 30.
From the current quarter’s earnings, the company will break out Facebook Reality Labs (FRL) as a separate reporting segment.
Under the new reporting structure, Facebook will provide revenue and operating profit for two segments — its family of apps (including Facebook, Instagram, Messenger, WhatsApp and other services) and FRL (augmented and virtual reality-related hardware, software and content).
The company expects its FRL investment will reduce its overall operating profit in the current financial year by almost $10bn.
“I am excited about our road map, especially around creators, commerce and helping to build the metaverse,” Mr Zuckerberg said.
Last month, Facebook launched a $50 million fund to build a metaverse — a digital space that allows users to communicate and move virtually. It will invest in metaverse programmes and external research over the course of two years, the company said.
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Evacuations to France hit by controversy
- Over 500 Gazans have been evacuated to France since November 2023
- Evacuations were paused after a student already in France posted anti-Semitic content and was subsequently expelled to Qatar
- The Foreign Ministry launched a review to determine how authorities failed to detect the posts before her entry
- Artists and researchers fall under a programme called Pause that began in 2017
- It has benefited more than 700 people from 44 countries, including Syria, Turkey, Iran, and Sudan
- Since the start of the Gaza war, it has also included 45 Gazan beneficiaries
- Unlike students, they are allowed to bring their families to France
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
Ibrahim's play list
Completed an electrical diploma at the Adnoc Technical Institute
Works as a public relations officer with Adnoc
Apart from the piano, he plays the accordion, oud and guitar
His favourite composer is Johann Sebastian Bach
Also enjoys listening to Mozart
Likes all genres of music including Arabic music and jazz
Enjoys rock groups Scorpions and Metallica
Other musicians he likes are Syrian-American pianist Malek Jandali and Lebanese oud player Rabih Abou Khalil
The five pillars of Islam
The Greatest Royal Rumble card as it stands
The Greatest Royal Rumble card as it stands
50-man Royal Rumble - names entered so far include Braun Strowman, Daniel Bryan, Kurt Angle, Big Show, Kane, Chris Jericho, The New Day and Elias
Universal Championship Brock Lesnar (champion) v Roman Reigns in a steel cage match
WWE World Heavyweight ChampionshipAJ Styles (champion) v Shinsuke Nakamura
Intercontinental Championship Seth Rollins (champion) v The Miz v Finn Balor v Samoa Joe
United States Championship Jeff Hardy (champion) v Jinder Mahal
SmackDown Tag Team Championship The Bludgeon Brothers (champions) v The Usos
Raw Tag Team Championship (currently vacant) Cesaro and Sheamus v Matt Hardy and Bray Wyatt
Casket match The Undertaker v Chris Jericho
Singles match John Cena v Triple H
Cruiserweight Championship Cedric Alexander v tba
Brolliology: A History of the Umbrella in Life and Literature
By Marion Rankine
Melville House
The specs
Engine: 3.9-litre twin-turbo V8
Power: 620hp from 5,750-7,500rpm
Torque: 760Nm from 3,000-5,750rpm
Transmission: Eight-speed dual-clutch auto
On sale: Now
Price: From Dh1.05 million ($286,000)
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence".
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- The Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Profile box
Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)
Kat Wightman's tips on how to create zones in large spaces
- Area carpets or rugs are the easiest way to segregate spaces while also unifying them.
- Lighting can help define areas. Try pendant lighting over dining tables, and side and floor lamps in living areas.
- Keep the colour palette the same in a room, but combine different tones and textures in different zone. A common accent colour dotted throughout the space brings it together.
- Don’t be afraid to use furniture to break up the space. For example, if you have a sofa placed in the middle of the room, a console unit behind it will give good punctuation.
- Use a considered collection of prints and artworks that work together to form a cohesive journey.
The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
Neil Thomson – THE BIO
Family: I am happily married to my wife Liz and we have two children together.
Favourite music: Rock music. I started at a young age due to my father’s influence. He played in an Indian rock band The Flintstones who were once asked by Apple Records to fly over to England to perform there.
Favourite book: I constantly find myself reading The Bible.
Favourite film: The Greatest Showman.
Favourite holiday destination: I love visiting Melbourne as I have family there and it’s a wonderful place. New York at Christmas is also magical.
Favourite food: I went to boarding school so I like any cuisine really.
Killing of Qassem Suleimani
Killing of Qassem Suleimani
Mohammed bin Zayed Majlis
More coverage from the Future Forum
Honeymoonish
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MEYDAN%20RACECARD
%3Cp%3E%3Cstrong%3E6pm%20%3C%2Fstrong%3EArabian%20Adventures%20%E2%80%93%20Maiden%20(TB)%20Dh82%2C500%20(Dirt)%201%2C200m%0D%3Cbr%3E%3Cstrong%3E6.35pm%20%3C%2Fstrong%3EEmirates%20Sky%20Cargo%20%E2%80%93%20Handicap%20(TB)%2087%2C500%20(D)%202%2C000m%0D%3Cbr%3E%3Cstrong%3E7.10pm%20%3C%2Fstrong%3EEmirates%20Holiday%20%E2%80%93%20Maiden%20(TB)%20Dh82%2C500%20(D)%201%2C400m%0D%3Cbr%3E%3Cstrong%3E7.45pm%20%3C%2Fstrong%3EEmirates%20Skywards%20%E2%80%93%20Handicap%20(TB)%20Dh87%2C500%20(D)%201%2C400m%0D%3Cbr%3E%3Cstrong%3E8.20pm%3C%2Fstrong%3E%20Emirates%20Airline%20%E2%80%93%20Handicap%20(TB)%20Dh105%2C000%20(D)%201%2C600m%0D%3Cbr%3E%3Cstrong%3E8.55pm%20%3C%2Fstrong%3EEmirates%20Airline%20%E2%80%93%20Handicap%20(TB)%20Dh105%2C000%20(D)%201%2C900m%0D%3Cbr%3E%3Cstrong%3E9.30pm%20%3C%2Fstrong%3EEmirates.com%20%E2%80%93%20Handicap%20(TB_%20Dh87%2C500%20(D)%201%2C200m%3C%2Fp%3E%0A
Background: Chemical Weapons
The years Ramadan fell in May
Killing of Qassem Suleimani
Zayed Sustainability Prize
RACE CARD
6.30pm: Handicap (TB) $68,000 (Dirt) 1,600m
7.05pm: Meydan Sprint – Group 2 (TB) $163,000 (Turf) 1,000m
7.40pm: Curlin Stakes – Listed Handicap (TB) $88,000 (D) 2,200m
8.15pm: UAE Oaks – Group 3 (TB) $125,000 (D) 1,900m
8.50pm: Zabeel Mile – Group 2 (TB) $163,000 (T) 1,600m
9.25pm: Balanchine – Group 2 (TB) $163,000 (T) 1,800m
10pm: Al Shindagha Sprint – Group 3 (TB) $130,000 (D) 1,200m
UAE currency: the story behind the money in your pockets
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COMPANY%20PROFILE
%3Cp%3ECompany%20name%3A%20CarbonSifr%3Cbr%3EStarted%3A%202022%3Cbr%3EBased%3A%20Dubai%3Cbr%3EFounders%3A%20Onur%20Elgun%2C%20Mustafa%20Bosca%20and%20Muhammed%20Yildirim%3Cbr%3ESector%3A%20Climate%20tech%3Cbr%3EInvestment%20stage%3A%20%241%20million%20raised%20in%20seed%20funding%3Cbr%3E%3C%2Fp%3E%0A
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Dresos%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20September%202020%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Vladimir%20Radojevic%20and%20Aleksandar%20Jankovic%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%2C%20UAE%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Fashion%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%24285%2C000%3B%20%24500%2C000%20currently%20being%20raised%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Crowdfunding%2C%20family%2C%20friends%20and%20self-funding%3C%2Fp%3E%0A
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Zayed Sustainability Prize
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UAE currency: the story behind the money in your pockets
