Facebook CFO Dave Wehner said the iOS changes were the “largest headwind” in the quarter and, if not for that, “we would have expected sequential growth from Q2 to Q3.”
The iOS changes hurt Facebook’s ability to target ads to users and, as a result, “we don’t see the same level of conversion data coming through,” Sheryl Sandberg, Facebook’s operating chief, said on the call. Facebook will rebuild its targeting and optimization systems to work with less data, a process that will take multiple years, she said.
Sandberg told analysts that the company experienced slowing e-commerce growth as more businesses open up from the Covid-19 shutdowns and consumers return to making purchases in person.
“Businesses are still making the shift online, but e-commerce is no longer growing at the pace it was at the height of the pandemic,” Sandberg said.
Sandberg also noted that advertisers have slowed spending in response to global supply chain issues and labor shortages. Still, Sandberg said, Facebook remains “the best platform for advertisers to reach people where they are and get measurable outcomes.”
Revenue from Facebook’s “other” segment, including consumer hardware such as Oculus virtual reality headsets, totaled $734 million, up 195% and more than the $477 million StreetAccount consensus estimate.
The company’s free cash flow of $9.55 billion fell short of the $9.9 billion StreetAccount consensus.
Facebook said in the third quarter it had 3.58 billion monthly users across its family of apps, up from 3.51 billion in the second quarter. This metric is used to measure Facebook’s total user base across its main app, Instagram, Messenger and WhatsApp.
Source Article from https://www.cnbc.com/2021/10/25/facebook-fb-q3-earnings-report.html
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