Facebook’s Earnings May Hint at Business Model’s Resiliency

Facebook Earnings

Facebook’s earnings report will come after the bell — and the numbers will tell a tale, perhaps, of business model resiliency.

Facebook has been no stranger to the headlines, where all manner of scrutiny from lawmakers and regulators serves as a reminder of current, and a harbinger of future, pressures.

In an example of the continued PR storm that is brewing for the social media giant, a slew of media outlets have started to publish the “Facebook Papers,” which are tied to internal documents at the company that paint a (perhaps to put it mildly) less-than-flattering portrait of lax content policing.

As for how this all may translate to top- and bottom-line performance: The expectations have already been tempered a bit coming into Monday night’s (Oct. 25) report, where the company said last quarter that “in the third and fourth quarters of 2021, we expect year-over-year total revenue growth rates to decelerate significantly on a sequential basis as we lap periods of increasingly strong growth.”

The company also added that “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.”

Moderating Growth Rates 

The year-over-year growth rates logged in the latest period were impressive. Even as the company was coming off the depths of the pandemic, Facebook said in the second quarter that advertising revenues were up 56% year on year, and daily active users were up 7% year on year to 1.9 billion.

Consensus has baked in the slowdown, where the Street projects that the company’s revenue growth rate will slow to 36% and the top line will come in at $29.3 billion. Earnings will come in, per Wall Street estimates, 17% higher to $3.19 per share.

Key metrics will center on the daily and monthly active user counts, and whether the ongoing pressures will make a dent in the installed base. The company said in its last report that it had a total of 3.5 billion users across Facebook, Messenger, Instagram and WhatsApp, which was up from 3.4 billion users in the first quarter.

Read more: Facebook Highlights eCommerce, Metaverse Plans as Pressure on Ad Business Grows 

We’ll get a sense of how Facebook intends to diversify away from the ad business, though any traction to offset ad revenue headwinds would take time. Facebook’s “other” revenue line accounted for only 1.7% of the total top line last quarter.

In one example, as noted over the summer and in a hint of larger-scale, commerce-related plans, the company said that Facebook Pay will be available off-platform, beginning with Shopify vendors. We may also get some commentary on Diem. But all eyes will be on the ad business Monday evening — as well as the user counts, as the engines that make all the other, nascent business lines feasible.

Also see: Facebook Pay Available off Facebook, Starting With Shopify in August 


March Madness 2025 and Beyond: When AI Meets the Big Dance

March Madness 2025 and Beyond: When AI Meets the Big Dance

As the calendar flips to March, college basketball fans are gearing up for another exhilarating NCAA tournament.

In the future, artificial intelligence and cutting-edge technology could change March Madness as we know it. Let’s break down how the digital revolution could transform the Big Dance.

AI Bracketology: The New Sixth Man

AI is already being used to predict brackets. Gone are the days of agonizing over your picks based on team mascots or your alma mater’s colors. In 2025, AI-powered bracketology is the name of the game. Fans can use algorithms that crunch data points, from player statistics to historical upset probabilities, all at the click of a button.

But beware, bracket enthusiasts. While these AI tools promise to boost your chances of winning the office pool, they can’t account for the quintessential March Madness chaos. You know, the instance where AI can predict everything except the inevitable Cinderella story that ruins everyone’s bracket by the second round.

The Rise of the Robo-Commentators

In a move that would be sure to ruffle some feathers, AI-generated commentary could be used for games. Digital play-by-play announcers would never need a bathroom break and potentially be able to recall obscure statistics from the 1957 tournament in an instant.

Virtual Reality Courtside Seats

Can’t make it to the Final Four? Ten years from now, games might happen in a digital stadium, Forbes reported. With virtual reality (VR) technology, fans could experience the thrill of courtside seats from the comfort of their living rooms.

“AI-generated athletes, inspired by the procedural generation techniques of video game developers … could perform in virtual arenas, exhibiting strategies and plays conceived by advanced predictive algorithms,” Forbes reported.

Just be careful not to get too caught up in the moment with streaming. Wouldn’t want to have reports of fans attempting to rush the virtual court after buzzer-beaters have led to an uptick in living room injuries — especially when that flat screen falls over.

AI Coaches: The Ultimate Clipboard Holder

While human coaches still call the shots, AI assistants could one day be indispensable members of the coaching staff. In the next five years, these digital strategists could analyze opponent tendencies and more.

“Building on existing technologies … AI will provide coaches and players with intricate, multi-dimensional data patterns that dramatically enhance both offensive and defensive strategies,” Forbes reported. “These advanced algorithms will analyze vast datasets from numerous games to uncover hidden trends, strategic insights, and predictive cues about opponents’ potential moves.”

The Referee’s New Best Friend: Computer Vision

Say goodbye to controversial calls. Advanced computer vision systems could assist referees in making split-second decisions, from determining if a player’s toe was on the line for a three-pointer to detecting the slightest touch on a blocked shot.

The Hawk-Eye system is already used in tennis and cricket to help determine fouls, Viso.AI reported.

“This system uses a network of cameras to track the ball and then compares the trajectory of the ball to a virtual model of the playing surface,” the report said. “This system is accurate within a few millimeters, which is much more accurate than the human eye.”

The Future of Fandom

As we dive into March Madness 2025, it’s clear that technology will change the way we experience the tournament. From AI-powered brackets to virtual reality arenas, the digital revolution is coming for basketball. But at its core, the magic of March Madness remains the thrill of competition, the joy of unexpected victories, and the heartbreak of last-second defeats.

So, whether you’re relying on an AI to pick your bracket this year, or screaming at a holographic referee in the future, remember to enjoy the ride. In the unpredictable world of college basketball, sometimes the best strategy is to embrace the madness — digital or otherwise.

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