TechMaven Jon Markman will be live blogging Facebook’s (FB) - Get Report second quarter earnings report after the close on Thursday, July 30, and it could be one of the most-closely-watched reports in some time, given that it will reveal the impact of both Covid-19 and a significant advertiser boycott on the social network’s ad-based business model.
According to estimates, spending on social media advertising recovered throughout the first quarter compared to April lows. But the impact of advertiser boycotts trying to get Facebook to change how it handles hate speech and misinformation was visible, and particularly pronounced in July.
CEO Mark Zuckerberg has used earnings calls before to expound on his position that Facebook shouldn’t be an arbiter of accuracy. Zuckerberg may discuss Facebook's content policies again, or at least address the boycott and discuss what the company has done to prepare for its next big test with the November elections. He could also use the call to discuss questioning he faced at Wednesday’s congressional anti-trust hearing about Facebook’s past acquisitions.
For the second quarter, analysts polled by FactSet are expecting Facebook to post revenue of $17.33 billion (up 3% annually) and GAAP EPS of $1.39 (down 30% excluding a year-ago FTC settlement charge). Among the other numbers to watch for are daily active user growth for core Facebook and Messenger, which analysts estimate stood at 1.75 billion (up 10%), and monthly active users, which analysts estimate reached 2.62 billion (up 9%).
Like many other companies, Facebook didn't provide revenue guidance for the second quarter owing to uncertainty caused by the coronavirus pandemic. Shares of Facebook are up roughly 14% year to date.
We’ll also be reporting on and analyzing Facebook’s earnings call with analysts, scheduled for 6:00 p.m. E.T.