The social media giant did, however, beat Wall Street estimates for the second quarter due to increased ad spending.
Facebook Inc said on Wednesday that it expects revenue growth in the third and fourth quarters of 2021 to “decelerate significantly,” sending the social media giant’s shares down about 5 percent in extended trading.
The company beat Wall Street estimates for quarterly revenue, bolstered by increased advertising spending as businesses build their digital presence to cater to consumers spending more time and money online.
The company’s total revenue, which primarily consists of ad sales, rose to $29.08bn in the second quarter from $18.69bn a year earlier, beating analysts’ estimates of $27.89bn, according to IBES data from Refinitiv.
Facebook, like its peers, has seen increased demand for digital ads as the coronavirus pandemic drove consumers to shop largely online, forcing several businesses to create online stores and markets using social media platforms.
The world’s largest social network’s revenue from advertising rose 56 percent to $28.58bn in the second quarter ended June 30, Facebook said.
The company said it expects Apple’s recent privacy change, requiring iPhone app developers to begin asking users’ permission to collect certain data for ads, to impact in the third quarter. Facebook has argued Apple’s recent requirement that iPhone app developers begin asking this permission would harm its business and hurt small companies that rely on personalised advertising.
Monthly active users came in at 2.90 billion, up 7 percent from the same period last year but missing analyst expectations of 2.92 billion and marking the slowest growth rate in at least three years, according to IBES data from Refinitiv.
Net income rose to $10.4bn, or $3.61 per share, from $5.18bn, or $1.80 per share, a year earlier. Analysts had expected a profit of $3.03 per share.