Facebook’s shares tumbled 9% Wednesday after it reported second-quarter revenue that missed street expectations. Revenue grew 42% to $13.23 billion but came below average analysts’ expectation of $13.36 billion after being embroiled in a slew of data leaks and fake news scandals.
Meanwhile, earnings came in at $1.74 per share, topping consensus estimate $1.72 a share. Last year same quarter, Facebook had posted profits of $1.32 a share, on revenue of $9.32 billion.
LIVE BLOG: Facebook Q2 2018 earnings call
In the second quarter, ad revenue, the largest revenue contributor for the company, jumped 42% to $13 billion. Analysts had projected ad revenue growth of about 40% – 50%. Meanwhile, mobile advertising revenue represented about 91% of the total advertising revenue.
Facebook also managed to boost its average revenue per user, which grew from $23.59 during Q1 to $25.91 in the US & Canada.
RELATED: Facebook Q2 2018 earnings call transcript
The #deletefacebook movement and Cambridge Analytica scandal slowed Facebook’s user base growth further in Q2 (See IG below). During the quarter, the company reported 11% increase in its daily active users. There were around 2.23 billion monthly active users as of June 30, 2018, up 11% compared to last year.
Related: Earnings preview: Embattled Facebook expected to maintain momentum in Q2
Over the last three years, shares of Facebook have surged roughly 120% and on Tuesday, the company’s stock had hit a record high.
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