Facebook (FB) Q2 2021 earnings results overshadowed by iOS and regulatory revenue headwinds

Apple's iOS 14.5 ad tracking protection features continue to be a stitch in Facebook's marketing side.

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Facebook has never been quiet about its displeasure with Apple’s iOS 14.5 update. With iPhones and other Apple devices now offering users the option to opt out of data collection, Facebook loudly and constantly reminds everyone that it stands to suffer the most due to its reliance on data-empowered targeted marketing. Such appears to once again be the case in Facebook’s Q2 2021 earnings results report, where despite increases in revenue, Facebook once again warned of the issues it faces headwinds from “regulatory and platform changes.”

Facebook released its Q2 2021 earnings results on its investor relations website on July 28, 2021. There were some positives for Facebook, including a hefty 56 percent increase in total revenue year-over-year. Facebook’s daily active users (DAU) and monthly active users (MAU) also boasted a year-over-year increase again, similar to Facebook’s win in this metric in Q1 2021. Despite this, Facebook’s CFO Outlook Commentary section of its earnings results suggested the company will be more impacted by changes such as those found in Apple’s iOS 14.5 app tracking protection update.

Despite any and all issues with iOS 14.5's ad tracking protection features, Facebook has continued to experience stock growth through the previous year, even in the time since iOS 14.5 launched.
Despite any and all issues with iOS 14.5's ad tracking protection features, Facebook has continued to experience stock growth through the previous year, even in the time since iOS 14.5 launched.

Facebook has brought up issues with the iOS 14.5 update before, speaking to how it will affect advertising and marketing on the Facebook platform and even claiming that it threatens Facebook's "free service". Nonetheless, the company claims to have accounted for this in its forward outlook.

“We continue to expect increased ad targeting headwinds in 2021 from regulatory and platform changes, notably the recent iOS updates, which we expect to have a greater impact in the third quarter compared to the second quarter,” the statement reads.

As a result, the statement also suggests that Facebook believes its revenue growth rates will decelerate through the second half of the year, throughout Q3 and Q4. It will remain to be seen just how much iOS 14.5 actually affects Facebook. That said, it was also noted recently that when given the option, nearly 95 percent of users opted out of ad tracking through iOS 14.5’s new options.

With that in mind, Facebook seems to be hunkering down and getting ready to take it on the chin as the long-term effects of Apple’s new ad tracking transparency feature sets in. Be sure to stay tuned for other Q2 2021 reporting from further companies as it becomes available this season.

News Editor

TJ Denzer is a player with a passion for games that has dominated a lifetime. When he's not handing out beatdowns in the latest fighting games, exploring video game history, or playing through RPGs with his partner, he's searching for new food and drinks in the constant pursuit of good times with good people inside and outside the South Texas area. You can also find him on Twitter @JohnnyChugs.

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