Why Facebook Earnings Are So Great
Facebook Inc. (NASDAQ: FB) released first-quarter financial results after markets closed Wednesday. The social media giant said that it had $1.71 in earnings per share (EPS) and $17.44 billion in revenue, compared with consensus estimates that called for $1.74 in EPS and $17.48 billion in revenue. The same period of last year had $0.85 in EPS and $15.08 billion in revenue.
During the quarter, daily active users totaled 1.73 billion on average for March 2020, an increase of 11% year over year. At the same time, monthly active users increased by 10% to 2.60 billion.
Family daily active people (DAP) increased 12% year over year to 2.36 billion, while family monthly active people (MAP) increased 11% to 2.99 billion. Note that these “Family” metrics represent estimates of the underlying number of unique people using one or more of Facebook, Instagram, Messenger, and/or WhatsApp.
Mobile advertising revenue represented roughly 98% of advertising revenue for the first quarter of 2019, relatively the same level from the first quarter last year.
Mark Zuckerberg, Facebook founder and CEO, commented:
Our work has always been about helping you stay connected with the people you care about. With people relying on our services more than ever, we’re focused on keeping people safe, informed and connected.
Shares of Facebook closed Wednesday at $194.19, in a 52-week range of $137.10 to $224.20. The consensus price target is $218.68. Following the announcement, the stock was up 6% at $206.89 in the after-hours trading session.