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Facebook reports 2.41 bn MAUs in Q2; ups investment in privacy protection

Facebook has delivered better than expected Q2 results, even as it continues to further strengthen privacy protections and delivering new experiences to its users. 

In a release issued to present Facebook Q2 earnings results, Mark Zuckerberg, Founder and CEO, Facebook, said, “We had a strong quarter and our business and community continues to grow. We are investing in building stronger privacy protections for everyone and on delivering new experiences for the people who use our services.” 

Second Quarter 2019 Operational and Other Financial Highlights: 

  • Daily active users (DAUs) – DAUs were 1.59 billion on average for June 2019, an increase of 8% year-over-year.
  • Monthly active users (MAUs) – MAUs were 2.41 billion as of June 30, 2019, an increase of 8% year-over-year.
  • Mobile advertising revenue – Mobile advertising revenue represented approximately 94% of advertising revenue for the second quarter of 2019, up from approximately 91% of advertising revenue in the second quarter of 2018.
  • Capital expenditures – Capital expenditures, including principal payments on finance leases, were $3.78 billion for the second quarter of 2019.
  • Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $48.60 billion at the end of the second quarter of 2019.
  • Headcount – Headcount was 39,651 as of June 30, 2019, an increase of 31% year-over-year.

In addition, it is estimated that more than 2.1 billion people now use Facebook, Instagram, WhatsApp, or Messenger (FB’s ‘Family’ of services) every day on average, and more than 2.7 billion people use at least one of FB’s Family of services each month. 

In July 2019, Facebook entered into a settlement and modified consent order to resolve the inquiry of the Federal Trade Commission (FTC) into its platform and user data practices. Among other matters, FB’s settlement with the FTC requires it to pay a penalty of $5.0 billion and to significantly enhance its practices and processes for privacy compliance and oversight. 

In particular, Facebook has agreed to implement a comprehensive expansion of its privacy program, including substantial management and board of directors oversight, stringent operational requirements and reporting obligations, and a process to regularly certify its compliance with the privacy program to the FTC. In the second quarter of 2019, Facebook recorded an additional $2.0 billion accrual in connection with its settlement with the FTC, which is included in accrued expenses and other current liabilities on its condensed consolidated balance sheet. 

Facebook also admitted that the online technology industry and the company have received increased regulatory scrutiny in the past quarter. In June 2019, the social media major were informed by the FTC that it had opened an antitrust investigation of the company. In addition, in July 2019, the Department of Justice announced that it will begin an antitrust review of market-leading online platforms.

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