Facebook misses on revenue and daily active users as scandals take their toll

The second quarter includes a bulk of the Cambridge Analytica data-sharing scandal

Facebook on desktop and mobile screens
The social media giant 's mobile advertising revenue made up 91% of its quarterly revenue

Facebook Inc (NASDAQ:FB) released its second-quarter earnings, with its pockets feeling some impact following scandals related to data leaks and fake news.

This quarter’s report includes the time period when the company was experiencing the height of the Cambridge Analytica scandal with its CEO testifying before US Congress and the European Union as well as the enactment of the EU’s General Data Protection Regulation.

The social media giant reported earnings of US$1.74 per share on revenue of US$13.23bn compared with US$1.32 EPS on revenue of US$9.32bn in the previous year’s second quarter.

The California-based company beat Wall Street estimates of US$1.72 EPS but fell below revenue expectations of US$13.36bn.

READ: SEC investigates why Facebook didn’t warn investors sooner on privacy lapse

“We are committed to investing to keep people safe and secure, and to keep building meaningful new ways to help people connect," said CEO Mark Zuckerberg in a press release.

Its global daily active users totaled 1.47 billion, falling below the consensus estimates of 1.49 billion.

Its mobile advertising revenue made up 91% of its quarterly revenue compared with 87% in the previous year’s second quarter.

The company was also hoping to make its move into China, opening a subsidiary to foster Chinese developers and start-ups, but its hopes were dashed after its business license approval was reversed, according to a New York Times report.

Shares of Facebook fell more than 8% to US$200.50 in Wednesday after-hours trading.

Quick facts: Facebook

Price: $183.55

Market: NASDAQ
Market Cap: $523.74 billion

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