Facebook’s third-quarter earnings report showed that while the company maintained revenue growth during the quarter, daily active users have declined across Canada and the US. This has resulted in more than a two percent drop in stock for the company.
CNBC reports that Facebook’s third-quarter earnings reports indicate that daily active users in Canada and the US have dropped to 196 million. This has resulted in roughly two million active users lost. In Q2, Facebook had around 198 million daily active users on the platform. During the second quarter, the company indicated that there was a surge in usage due to the COVID-19 pandemic. Facebook is now expecting numbers to flatten out or continue to decrease during the fourth quarter.
While daily active users may be tempering off in Canada and the US, Europe has maintained a consistent 305 million across the last three quarters.
Across the company’s many apps, including Instagram, Messenger, and WhatsApp, Facebook is reporting that it’s seen a rise of monthly active users. In the third quarter, the company is counting 3.21 billion monthly users. This is compared to the 3.14 billion active users during the second quarter.
Facebook is reporting better-than-expected revenue for the quarter. Ad revenue has increased 22 percent, despite ad boycotts made through the StopHateForProfit campaign. CEO Mark Zuckerburg has stated the company has 10 million active advertisers on the platform. Zuckerburg also expects ad revenue to continue to increase in the fourth quarter as the holiday season is likely to drive advertisers.
The company also reports $249 million for the quarter stemming from “Other” revenue streams. This includes its Oculus VR and Portal video conferencing tool. The company expects the launch of the Oculus Quest 2 to help boost its revenue as sales on the new VR headset have been strong.