Facebook stock jumps 7% as pandemic helps make its audience even bigger

Facebook said that it had 2.7 billion monthly active users at the end of the June quarter, a 12% increase from the prior year.

(CNN) -- The global pandemic is proving to be a boon for Facebook's user numbers -- at least for now.

Facebook said Thursday that it had 2.7 billion monthly active users at the end of the June quarter, a 12% increase from the prior year. When factoring in all of Facebook's various apps, including Instagram and WhatsApp, the company topped 3 billion users for the first time.

With more eyeballs, Facebook also saw revenue grow 11% to nearly $18.7 billion for the second quarter, even as the broader economy contracted.

The company said its daily and monthly active users numbers "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." However, the company said as stay at home orders begin to ease, it expects engagement to be flat or to slightly decline in the next three months, compared to the past quarter.

Facebook's stock jumped more than 7% in after hours trading Thursday following the earnings report.

The earnings release comes at a sensitive moment for the company. On Wednesday, Facebook CEO Mark Zuckerberg appeared before Congress along with CEOs from Apple, Amazon and Google parent company Alphabet, where they were grilled about their competitive tactics.

Facebook is also confronting a major advertising boycott that includes numerous household brands, such as Hershey's, Starbucks and Patagonia. A civil rights coalition that includes the Anti-Defamation League and the NAACP launched the #StopHateforProfit campaign, calling on major companies to halt advertising on Facebook for the month of July due to the platform's "repeated failure to meaningfully address the vast proliferation of hate on its platforms."

However, whatever whatever financial impact there may be from the boycott would not be seen during the second quarter, which ended in June.

While some brands have committed to pause spending through the end of this month, others such as household goods giant Unilever are halting advertising through the end of the year across social media, not just Facebook. However, much of Facebook's ad revenue comes from small and medium-sized businesses, which could potentially protect it from a significant revenue shortfall.

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