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It turns out that Facebook isn’t immune to having a bad quarter. The social media giant missed Wall Street expectations for revenue and user growth when it reported its Q2 earnings on Wednesday, sending its stock down in the process.
Facebook reported $13.23 billion in revenue and earnings of $1.74 per share for the three months ended June 30 — beating analyst estimates of $1.71 a share but missing sales estimates of $13.34 billion.
It’s the first time in 13 quarters that Facebook has missed Wall Street guidance on revenue. Facebook’s stock is taking a hit in after-hours trading, falling 9 percent to about $200 per share.
Despite missing on revenue, the company still posted its best quarter ever for sales — showing how great expectations have become for Facebook’s ad business. Revenue increased 42 percent year-over-year.
The company continues to dominate mobile advertising, where 91 percent of its ad revenue came from during the second quarter.
“Our community and business continue to grow quickly,” Mark Zuckerberg, Facebook co-founder and CEO, said in a statement accompanying earnings. “We are committed to investing to keep people safe and secure, and to keep building meaningful new ways to help people connect.”
That growth fell slightly below analyst estimates, though. Facebook reported 2.23 billion monthly active users — inching up from 2.2 billion last quarter — but falling short of the 2.25 billion MAUs projected by analysts. Daily active users also came up short, hitting 1.47 billion, compared to the 1.49 billion Wall Street was looking for. Both MAUs and DAUs increased 11 percent since the second quarter of 2017.
Facebook looks to be near a saturation point at home, with its domestic user base remaining flat at 185 million daily users. The social network has only added 5 million daily users since the end of 2016.
It was the first full quarter following the Cambridge Analytica data scandal — where up to 87 million users had their information unknowingly accessed by the political firm. Facebook execs, including Zuckerberg and COO Sheryl Sandberg, made the rounds in recent months, discussing with reporters and Congress how the company would better protect its users.Outside the U.S., Facebook saw its strongest revenue growth come from Asia during the second quarter.
The company will hold a conference call at 5 p.m ET to discuss its earnings.