Due to the ongoing Coronavirus pandemic, daily users of Facebook increased 12 per cent year over year, to 1.79 billion. The usage of its other Apps, Instagram and Whatsapp, also increased 14 per cent to 3.14 billion. Advertising revenue also saw an 11 per cent rise year over year to $18.69 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,” Facebook 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 thrived through the pandemic to see a surge in revenue, but still performed poorly compared to other tech giants like Amazon, whose revenue grew 40 per cent to $89 billion.
However, the Company did better compared to Alphabet, whose revenue declined 2 per cent year over year.
Facebook’s earnings are particularly impressive considering the mass boycott on advertising by some of the World’s biggest brands. Coca Cola, Lego, Unilever and Starbucks are just some of the companies that suspended advertising on the Facebook social media platforms. This was in reference to the company’s inaction following claims of racism and hate speech.
Following the boycott, Facebook grew in revenue on the strength of millions of small businesses that rely on the platform for direct sales. However, the company warned that increased engagement may not last as businesses are reopening on the ground and more people may prefer to visit.
“More recently, we are seeing signs of normalization in user growth and engagement as shelter‑in-place measures have eased around the world, particularly in developed markets where Facebook’s penetration is higher,” the company said.
The company projected that the app’s usage may face a slight decline or flatten in the next quarter.
The company saw an increase in hiring, with its current employee figure at 52,534, which is 32 per cent higher from last year.