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Facebook Reports Second Quarter 2020 Results

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Facebook, Inc. (Nasdaq: FB) today reported financial results for the quarter ended June 30, 2020.

“We’re glad to be able to provide small businesses the tools they need to grow and be successful online during these challenging times,” said Mark Zuckerberg, Facebook founder and CEO. “And we’re proud that people can rely on our services to stay connected when they can’t always be together in person.”

Second Quarter 2020 Financial Highlights

Three Months Ended June 30,

Year-over-Year %

In millions, except percentages and per share amounts

2020

2019 (1)

Change

Revenue:

Advertising

$

18,321

$

16,624

10%

Other

366

262

40%

Total revenue

18,687

16,886

11%

Total costs and expenses

12,724

12,260

4%

Income from operations

$

5,963

$

4,626

29%

Operating margin

32%

27%

Provision for income taxes

$

953

$

2,216

(57)%

Effective tax rate

16%

46%

Net income

$

5,178

$

2,616

98%

Diluted earnings per share (EPS)

$

1.80

$

0.91

98%

_________________________

(1) Includes an additional $2.0 billion legal expense related to our settlement with the U.S. Federal Trade Commission (FTC) and a $1.1 billion income tax expense due to the Altera Ninth Circuit Opinion, both accrued in the second quarter of 2019.

Second Quarter 2020 Operational and Other Financial Highlights

  • Facebook daily active users (DAUs) – DAUs were 1.79 billion on average for June 2020, an increase of 12% year-over-year.
  • Facebook monthly active users (MAUs) – MAUs were 2.70 billion as of June 30, 2020, an increase of 12% year-over-year.
  • Family daily active people (DAP) – DAP was 2.47 billion on average for June 2020, an increase of 15% year-over-year.
  • Family monthly active people (MAP) – MAP was 3.14 billion as of June 30, 2020, an increase of 14% year-over-year.
  • Capital expenditures – Capital expenditures, including principal payments on finance leases, were $3.36 billion for the second quarter of 2020.
  • Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $58.24 billion as of June 30, 2020. On July 7, 2020, we paid approximately $5.8 billion at the then–current exchange rate for our investment in Jio Platforms Limited.
  • Headcount – Headcount was 52,534 as of June 30, 2020, an increase of 32% year-over-year.

Impact of COVID-19 on Outlook

Our business has been impacted by the COVID-19 pandemic and, like all companies, we are facing a period of unprecedented uncertainty in our business outlook. We expect our business performance will be impacted by issues beyond our control, including the duration and efficacy of shelter-in-place orders, the effectiveness of economic stimuli around the world, and the fluctuations of currencies relative to the U.S. dollar.

  • Engagement – Facebook DAUs and MAUs in the second quarter of 2020 reflect increased engagement as people around the world sheltered in place and used our products to connect with the people and organizations they care about. More recently, we are seeing signs of normalization in user growth and engagement as shelter-in-place measures have eased around the world, particularly in developed markets where Facebook’s penetration is higher. Looking forward, as shelter-in-place restrictions continue to ease, we expect the number of Facebook DAUs and MAUs to be flat or slightly down in most regions in the third quarter of 2020 compared to the second quarter of 2020.
  • Revenue – In the first three weeks of July, our year-over-year ad revenue growth rate was approximately in-line with our second quarter 2020 year-over-year ad revenue growth rate of 10%. We expect our full quarter year-over-year ad revenue growth rate for the third quarter of 2020 will be roughly similar to this July performance. There are several factors contributing to this outlook, including:
    • First, continued macroeconomic uncertainty, including the pace of recovery and the prospects for additional economic stimulus;
    • Second, our expectation that some of the recent surge in community engagement will normalize as regions reopen;
    • Third, the impact from certain advertisers pausing spend on our platforms related to the current boycott, which is reflected in our July trends; and
    • Lastly, headwinds related to ad targeting and measurement, including the impact of regulation, such as the California Consumer Privacy Act, as well as headwinds from expected changes to mobile operating platforms, which we anticipate will be increasingly significant as the year progresses.
  • Total expenses – We expect total expenses in 2020 to be in the range of $52-55 billion, narrowed slightly from the prior range of $52-56 billion.
  • Capital expenditures – We expect full-year 2020 capital expenditures to be approximately $16 billion, at the high end of our prior $14-16 billion range, as we have resumed data center construction efforts earlier than expected. However, a great deal of uncertainty remains in our outlook, and our full year capital expenditures will depend on how the pandemic impacts our ability to construct data centers and refresh equipment.
  • Tax rates – We expect our full-year 2020 tax rate to be in the mid-teens, although we may see fluctuations in our quarterly rate depending on our financial results.

This News has been Published in Partnership with PR Newswire

Acquisition

Olympus announces acquisition of Arc Medical Design Limited from Norgine B.V.

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Olympus announces acquisition of Arc Medical Design Limited from Norgine B.V.

Olympus Corporation today announced it has signed a definitive agreement to acquire Arc Medical Design Limited (Arc Medical Design), a subsidiary of Norgine B.V. The acquisition underscores Olympus’ commitment to expanding its offering in gastrointestinal therapeutic devices and the development of advanced colonoscopy tools through M&A (mergers and acquisitions) opportunities as well as through R&D (research and development) with the overarching goal of improving early detection and treatment of colorectal cancer (CRC).  

Under the agreement Olympus will acquire Arc Medical Design and obtain full rights to its suite of innovative medical products. Olympus will convert its current exclusive distribution rights of ENDOCUFF VISION™ to a full acquisition of the ENDOCUFF family of products, which also includes ENDOCUFF™, ENDOCUFF GLIDE™ and ENTEROCUFF™, as well as WIDE-EYE™ POLYTRAP and several products currently in development.

By acquiring Arc Medical Design, Olympus is assuming worldwide responsibility for design, manufacturing, distribution and business strategy for the product portfolio with an immediate effect. It will further enable the company to improve clinical outcomes, reduce overall costs and enhance quality of life for patients.

“It is a great pleasure to announce our acquisition of Arc Medical Design”, said Mike Callaghan, Vice President/General Manager of Global GI EndoTherapy Business Unit at Olympus. “ENDOCUFF VISION has been a pivotal tool in our EndoTherapy portfolio, and we are delighted to expand our product portfolio to include the entire ENDOCUFF family.”

The flagship product ENDOCUFF VISION is a device attached to the distal end of a colonoscope, designed to maintain and maximize visibility during colonoscopy. Through its unique design, ENDOCUFF VISION can manipulate large folds, anchor the scope tip during loop reduction and stabilize during complex procedures, such as a polypectomy.

Data has shown a colonoscopy with ENDOCUFF technology can increase the adenoma detection rate (ADR) by up to 11% compared to a standard colonoscopy*1. Research shows that, for every 1% increase in ADR, there is a 3% decrease in CRC risk*2. Higher detection rates and more accurate diagnosis could, therefore, help reduce the number of deaths from preventable digestive cancers, such as CRC. CRC is a leading cause of cancer death for both men and women and screening is one of the powerful weapons against the disease. Colonoscopy is considered the beneficial method for detection and removal of hard-to-find adenomatous polyps.

Callaghan sums up: “We are excited about the acquisition of Arc Medical Design as it expands our expertise in innovative medical technology, strengthens our global leadership in endoscopy and reinforces the commitment to our purpose of making people’s lives healthier, safer and more fulfilling.”

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Investment

Reward-based Fundraising and Preselling Startup CrowdPouch raises Angel Round from Elina Investments

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CrowdPouch, a reward-based fundraising and preselling platform, has raised an angel round funding from Elina Investments Pvt. Ltd. The Bengaluru based technology startup will utilize the funds for product development, branding and team expansion.

The funding from Elina Investments comes at a time when the company has already supported over 100 fundraising and pre-selling campaigns on its platform within a year of its inception. Going forward, CrowdPouch aims at hosting thousands of campaigns that encourage filmmakers, artists, innovators and dreamers to come forward and work towards fulfilling their dreams.

Floated by Syed Safawi, corporate leader and technology investor, Elina Investments has funded several successful startups at an early stage, including GoMechanic, PadUp, Tarnea Technology, Senpiper Technology and Zefmo Media to name a few.

“CrowdPouch is more than business for me. It has been my life’s goal to encourage artists, innovators, and visionaries across sectors to pursue their passion,” said Vittal Ramakrishna, CEO and Founder of CrowdPouch. “India has an untapped market for fundraising and most are unaware of the merits of preselling. Through CrowdPouch, our vision is to create a niche fundraising ecosystem where all essential factors culminate seamlessly to build a nation of dreamers and achievers. Elina has stepped in at the right moment to help us scale our efforts.”

“We at Elina firmly believe in the power of technology platforms and Crowdpouch is catalysing the democratisation of such opportunities in a vast country like India. It is an opportune time to focus on preselling, as the nation answers the clarion call of Aatmanirbhar Bharat and going Vocal for Local,” said Divyendu Kumar, Director, Elina Investments. “CrowdPouch is a wonderful platform and Vittal with his team bring in the right blend of passion, maturity and understanding to be able to leverage the massive opportunity that it presents – both in scale and quality.”

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Artificial Intelligence

AIBotics Go-Digital Series 2020 Showcases AI and Robotic Innovations to Augment Human Potential

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SINGAPORE, Aug. 3, 2020 — Asia Pacific Assistive Robotics Association (APARA), a non-profit organization founded to facilitate adoption and augmentation of Artificial Intelligence (AI) and Robotics, today announced AIBotics Go-Digital Series 2020, an AI and Robotics event themed around ‘Augmenting the Human Potential’, will be launched between August and November 2020, aiming to facilitate the increasing dependency on AI technology into improving human lives.

An international event endorsed and supported by the International Alliance of Robotics Associations (IARA) and a number of global and regional partners including the University of Oxford, the ASEAN Smart Cities Network, Japan Science & Technology Agency, the Malaysian Artificial Intelligence and Robotics Association, among others, AIBotics Go-Digital Series 2020 reviews ethical and responsible AI and robotics innovations through webinars and a virtual exhibition 24 hours a day, seven days a week from August for four months, bringing together renowned industry experts as well as a number of projects and innovative solutions from all around the world.

To enable a smart, seamless and sustainable digital conferencing experience, APARA is collaborating with Tencent Cloud, the official conferencing solution provider of AIBotics Go-Digital Series 2020, to bring visitors and delegates a series of power-packed webinars and a virtual exhibition through Tencent Cloud Conference (TCC) solutions which have been widely adopted by local and overseas organizations and enterprises at online and digital business conferences, annual meetings, road shows, lectures, industry forums, among others.

“As we adjust to the ‘new normal’ brought about by the COVID-19 pandemic, AI has also become much more mainstream while allowing gatherings and business meetings to be held amid current circumstances. We are excited to present AIBotics Go-Digital Series 2020, highlighting how AI and Robotics can truly augment human potential, which is a timely message in light of the virus-related disruptions globally,” said Shanlynn Lee, President of APARA.

“One of the benefits of us going online this year is that unlike conventional conferences, we will be serving our visitors from all around the world for the whole duration of the event, without closing for business, with seamless digital conferencing support from Tencent Cloud. What’s more, visitors can simply register with AIBotics Go-Digital to have access to the webinars and the virtual exhibition, a marketplace that never sleeps, for four months, so they can take their time and come back again and again to see all the exhibits even after the event with no rush,” Ms. Lee added.

Featuring speakers from the UK, Finland, Germany, Israel, Japan, Malaysia, New Zealand and South Korea amongst many other countries, AIBotics Go-Digital Series 2020 aims to drive and showcase AI and Robotics applications across a variety of sectors, address issues in its development and offer recommendations for utilizing such applications with the protection of important human values in mind.

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