Facebook, Inc. (NASDAQ: FB) stock is down Friday after the social media giant reported financial results for the quarter ended September 30, 2020.
Facebook reported, as expected, that in the third quarter of 2020 DAUs and MAUs in the US & Canada declines slightly from the second quarter 2020 levels which were elevated due to the impact of the COVID-19 pandemic. As for projections, in the fourth quarter of 2020 the company expects this trend to continue and that the number of DAUs and MAUs in the US & Canada will be flat or slightly down compared to the third quarter of 2020.
For the fourth quarter 2020 year-over-year ad revenue growth rate is expected to be higher than our reported third quarter 2020 rate, driven by continued strong advertiser demand during the holiday season. Additionally, Oculus Quest 2 orders have been strong which should benefit Other Revenue.
“We had a strong quarter as people and businesses continue to rely on our services to stay connected and create economic opportunity during these tough times,” said Mark Zuckerberg, Facebook founder and CEO. “We continue to make significant investments in our products and hiring in order to deliver new and meaningful experiences for our community around the world.”
Facebook also reported that it expects 2020 total expenses to be in the range of $53-54 billion, narrowed from a prior predicted range of $52-55 billion. For 2021 total expenses the company anticipates that total expenses will be in the range of $68-73 billion, driven by continued investments in product development and technical talent, as well as a return to more normal levels of spend in areas like office operations and travel.