Facebook Earnings: Miss on Revenue and DAUs; Stock Plunges

Alphabet reported earnings this week, and now, Facebook has done the same. After the market closed, the California-based company reported its Q2 earnings, and despite some trouble in the quarter (data leaks, etc.), analysts were not expecting the Facebook earnings report to look like this.

Why? Well, because Facebook missed on revenue and daily active users (DAUs), and now the stock is falling.

Facebook Earnings Report: July 25th, 2018

Shares are falling because Facebook missed on the top line. On a happier note, the company did beat on the bottom line! However, that wasn’t enough to keep the FB stock out of the red zone, despite hitting a record high before the closing bell.

A lot of people were waiting for this Facebook earnings report, particularly with interest in its daily active user rates, as this quarter came mostly after the Cambridge Analytica scandal had played out. But disappointing them and many others, Facebook’s daily active user rates did not meet expectations. A lot of stuff didn’t.

Here are some important takeaways from the Q2 Facebook earnings report.

Revenue

Revenue did not meet analyst expectations. Analysts thought Facebook would bring in $13.36B. In reality, revenue came in at $13.23B.

Daily Active User Rates in North America

It came close, but not enough. The market was forecasting Facebook to see 185.4M daily active users, but the number actually came in at 185M on the dot for the second quarter.

Daily Active User Rates in Europe

European daily active user rates were reported as being 279 million in the Facebook earnings report, versus the 279.4M expected.

Global Daily Active Users

Wall Street expected 1.49B, but it came in at 1.47B. While it’s true these rates were up 11% Y-O-Y, the final numbers are still less than what analysts were forecasting.