Facebook is in for a rough week, but its latest financial results show it’s still raking in the cash
Facebook revealed financial numbers on Monday that showed the social media giant is making more money than ever, even as its critics have never been louder.
The company posted its third-quarter results after markets closed on Monday, revealing that its revenue rose by 35 per cent in the three months up to the end of September. Its profit rose by 17 per cent, and the company even saw an unexpected uptick in the number of people who use its services every day.
“We made good progress this quarter and our community continues to grow,” founder and CEO Mark Zuckerberg said.
Shares rose by about two per cent in after-market trading on the results.
The company’s earnings come at the start of what is likely to be a tumultuous week for the Facebook.
A whistle blower at the company is appearing in front of European lawmakers detailing the company’s complicity in spreading online misinformation because it is good for their bottom line.
A Facebook whistleblower delivered scathing criticism of the company this week, calling it morally bankrupt for putting profit over the safety of users, including children. The Conversation Panel discusses what the testimony means for the future of the company and its users. 14:36
The company has been under siege since Frances Haugen went public a month ago about her former employer’s role in the Jan. 6 riot at the U.S. Capitol attempting to overthrow the government.
Facebook has said Haugen “mischaracterized” what the company does and how they do it. The company has been in damage control mode ever since, culminating in a plan set to be unveiled on Thursday of this week to reorganize, rename and rebrand under a new focus on the “metaverse.”
The Verge’s senior reporter Alex Heath tells Power & Politics the social media giant is set to undergo a series of changes — including a new company name. 5:31
Part of that plan will see the company divide its business into different divisions to better focus on where it sees its growth coming from.
“I’m excited about our road map, especially around creators, commerce and helping to build the metaverse,” Zuckerberg said.
The company says it plans break out its division focused on hardware, virtual and augmented reality into a new reporting segment, as its main advertising businesses face “significant uncertainty.”