Facebook’s third-quarter profits were higher than projected, despite the company’s continued negative news due to stolen internal papers.
In the three months ending in September, the social media behemoth recorded a profit of $9 billion (£6.5 billion), up from $7.8 billion the previous year. However, Apple’s iOS 14 operating system received a new privacy update that made it more difficult for marketers to target adverts to specific users.
It comes as a former employee made new allegations of unethical behaviour. Frances Haugen has made public a cache of internal documents indicating that Facebook prioritised business over user safety.
According to many media sources, the documents demonstrate that Facebook failed to monitor content that encouraged hate speech and sex trafficking outside of the United States on a regular basis.
The social media behemoth announced that its monthly user base had increased by 6% to 2.91 billion in the year ending September 30. Despite the company’s high profitability, revenue fell short of analyst estimates due to “headwinds” produced by Apple’s privacy requirements.
The privacy reform will have an impact on Facebook’s digital business in the fourth quarter, but the company is anticipated to react to the changes over time. The company announced that it would spend $10 billion this year on its metaverse branch, known as Facebook Reality Labs, which is responsible for developing augmented and virtual reality technology, software, and content.
The pressure has only increased as a result of the whistleblower documents, which were initially revealed by the Wall Street Journal.
An internal Facebook study on Instagram’s effects on teen mental health, whether Facebook’s platforms foment divisiveness, and Facebook’s handling of the January 6 Capitol incident are among them.
Ms. Haugen told UK MPs on Monday that Facebook was “unquestionably making hate worse.”
MPs are debating what additional laws to impose on major social media platforms as part of the proposed Online Safety Bill. Despite the accusations, Facebook’s stock rose 1.3 percent in after-hours trade on Monday. So far this year, the company’s stock has increased by nearly 20%.
