Facebook Plans to Break out From Its AR and VR Top Lines

Facebook reportedly plans to break out from its AR and VR top lines. The social media giants Facebook have reported its revenue for the third quarter of the year today. The company reported $29.0 billion total in revenue and $3.22 in earnings per share that are calculated on a diluted basis.

Facebook Plans to Break out From Its AR and VR Top Lines

Facebook Plans to Break out From Its AR and VR Top Lines

Facebook’s investors normally had expected revenue reports from the company at $29.58 billion based on data collected by yahoo finance and also $3.19 in earnings per share. The shares of Facebook expectedly are up in after-hours trading. This shows that it is not a surprise that the company came slightly on top-line.

Just in case you are wondering why the public is not surprised by the results Facebook provided, there is a reason for it. And it may be due to the fact that the social media platforms report comes in the wake of snaps digest that dropped last week.

The shares of snap came short after indications from the company cited that it anticipated a better and modest fourth quarter than the market had initially. The company went on to put the blame on apple and supply chain woes for the troubles in its revenue growth.

Facebook however peened a letter to its investors. And in the letter, the company added guidance for the fourth quarter of 2021 and it is including revenues that will be in between $31.5 billion and $34 billion. However, the markets expect $34.89 billion above what is signaled by the social media company Facebook.

The Cause of Facebook Short Comings in Its Revenue Update

The noticeable gap between market expectation and the forecasts from Facebook appears to be from expected sources.  In its open letter regarding its Q4 guidance to investors, Facebook wrote “our outlook reflects the significant uncertainty we face in the fourth quarter in the light of continued headwinds from Apples iOS 14 changes and macroeconomic and COVID-related factors. In addition, we expect non-ads revenue to be down year-over-year in the fourth quarter as we lap the strong launch of quest 2 during last year’s holiday shopping season.”

The company also cited that the changes that came with how apple handles privacy issues and its related downstream effects alongside Covid-related issues were anticipated. The company also noted in its reports to investors that it will “break out Facebook reality labs, or FRL, as a separate reporting segment.”

The company also added that it “expended significant resources towards our augmented and virtual reality products and services.” with that being said, it seems the company thinks it’s time to have another stream of revenue category.

What the Future Holds For Facebook

Contained in the reports to its investors, the social media company starting from next year will have two segments. The first segment here is its “family of apps” grouping and it will feature results from WhatsApp, Facebook, Instagram, Messenger, and other services. The second segment will include “augmented and virtual reality that is related to consumer hardware, software, and content.


Please enter your comment!
Please enter your name here