Here’s what to expect when Facebook reports earnings after the bell

Facebook co-founder and CEO Mark Zuckerberg testifies before the House Financial Services Committee in the Rayburn House Office Building on Capitol Hill October 23, 2019 in Washington, DC. Zuckerberg testified about Facebook’s proposed cryptocurrency Libra, how his company will handle false and misleading information by political leaders during the 2020 campaign and how it handles its users’ data and privacy.

Chip Somodevilla | Getty Images News | Getty Images

Facebook will announce its second quarter earnings results on Thursday after the bell. 

Here’s what analysts expect:

  • Earnings: $1.39 per share, according to Refinitv
  • Revenue: $17.4 billion, according to Refinitiv
  • Daily active users (DAUs):  1.7 billion, according to FactSet
  • Monthly active users (MAUs):  2.6 billion, according to FactSet
  • Average revenue per user (ARPU): $6.76, according to FactSet

Facebook has seen an increase in user engagement as a result of the coronavirus, but the ad business has softened due to the collapse of industries like travel, hospitality and live events. The company is expected to report revenue growth of just 3.1% from a year earlier, by far the weakest growth rate since its IPO in 2012.

The second-quarter results come a day after CEO Mark Zuckerberg’s testimony on Wednesday before the House Antitrust Subcommittee hearing, alongside the CEOs of Amazon, Apple and Google. During the hearing, Zuckerberg was criticized for Facebook’s acquisitions of Instagram and WhatsApp, its enforcement of policies against competitors like Pinterest and the way that it’s copied rivals like Snap

In its last earnings report, Facebook said it wasn’t providing guidance for the second quarter or for the full year. If Facebook offers a forecast on Thursday, it will have to account for a widespread boycott by large advertisers. In mid-June, activists launched a campaign urging brands to suspend their advertisements on Facebooks throughout July in protest of the hate speech and misinformation on the site. Coca-ColaStarbucks, and Volkswagen, are among the many participants.

Analysts estimate third-quarter revenue growth of 7.9% to $19 billion, according to Refinitiv. Wedbush analysts said in a report this week that because of the boycotts, about $100 million of “near term brand revenue is at risk.”

Zuckerberg dismissed the boycott as a “reputational and a partner issue” in a internal company meeting, according to The Information.

“My guess is that all these advertisers will be back on the platform soon enough,” Zuckerberg said, according to the report. 

This is breaking news. Please check back for updates. 

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