Facebook, while currently embroiled in scandal after whistleblower Frances Haugen leaked internal documents to The Wall Street Journal, has announced its Q3 financial results.
It recorded a 35 per cent increase in total revenue, growing to US$29.01 billion – though analysts had predicted a higher figure of $29.57 billion.
Its net profit also grew by 17 per cent to US$9.19 billion.
Average daily active users (which Facebook calls DAUs) grew 6 per cent year-on-year to 1.93 billion, while monthly active users (MAUs) also grew by 6 per cent YoY to 2.91 billion.
In an earnings call, CEO Mark Zuckerberg highlighted the company’s areas of ongoing focus, most significantly, a renewed interest in the 18-29 age bracket.
He highlighted Instagram Reels, which compete with TikTok – who Zuckerberg called “one of the most effective competitors we have ever faced.”
According to Zuckerberg, a years-long focus on Reels could make the product as significant as Facebook’s News Feed to the company.
He also indicated a shift away from prioritising older Facebook users, saying: “over the last decade as the audience that uses our apps has expanded so much and we focus on serving everyone, our services have gotten dialed to be the best for the most people who use them rather than specifically for young adults.”
During the call, he aplayed down criticism facing the company as a result of Haugen’s whistleblowing, saying they were a “false picture of our company”.
Also significant was the announcement of a $10 billion investment into the metaverse. Facebook’s interest in the metaverse had already been reported in the context of a potential brand name change.
According to Facebook CFO David Wehner, that investment could come through the Facebook Reality Labs.
Zuckerberg said: “This is not an investment that is going to be profitable for us any time in the near future. But we basically believe that the metaverse is going to be the successor to the mobile internet.”
