Facebook revenue rises 48%, driven by higher-priced ads

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CNBC 28 April, 2021 - 05:10pm 30 views

What time is Facebook earnings report?

Facebook's third-quarter earnings call is at 5 p.m. EDT Wednesday. ForbesFacebook Posts $26 Billion In Revenue, Shattering Wall Street Expectations As Income Nearly Doubles

Facebook smashes revenue estimates but warns Apple change could hobble growth

The Star Online 28 April, 2021 - 04:10pm

FILE PHOTO: The Facebook logo is displayed on a mobile phone in this picture illustration taken December 2, 2019. REUTERS/Johanna Geron/Illustration

(Reuters) - Facebook Inc beat Wall Street expectations for both quarterly revenue and profit on Wednesday but warned that growth later this year could "significantly" decline as new Apple Inc privacy policies will make it more difficult to target ads.

The company's shares were up 5% in extended trading.

The world's largest social network has blasted Apple over its requirement that iPhone app developers begin asking users' permission to collect certain data for ads, saying the change would harm its business and hurt small companies that rely on personalized advertising.

At the same time, it has built shopping and e-commerce features within Facebook and Instagram, which are expected to bring additional revenue to the company and make its ad inventory more valuable.

Total revenue, which primarily consists of ad sales, rose to $26.17 billion in the first quarter ended March 31, beating analysts' average estimate of $23.67 billion, according to IBES data from Refinitiv.

Facebook had previously cautioned investors that the iPhone changes could lead to a slowdown in growth.

Monthly active users on Facebook rose 10% to 2.85 billion, matching analyst expectations.

Net income for the first quarter came in at $9.5 billion, or $3.30 per share, compared with $4.9 billion, or $1.71 per share, a year earlier. Analysts had expected a profit of $2.37 per share.

Facebook said its total expenses for the year would be in the range of $70 billion to $73 billion, as it invests in consumer hardware products like Oculus virtual reality headsets and infrastructure.

(Reporting by Noor Zainab Hussain in Bengaluru and Sheila Dang and Elizabeth Culliford in New York; Editing by Arun Koyyur and Matthew Lewis)

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Facebook Surges on First-Quarter Earnings Beat

TheStreet 28 April, 2021 - 03:46pm

Shares of the Menlo Park, California-based company rose 5% to $322.46 in after-hours trading. Facebook shares are up 18.7% year-to-date, compared to the S&P 500's rise of 11.4% over the same time period.

Facebook reported net income of $9.50 billion, or $3.30 per share, compared with $4.9 billion, or $1.71 per share, a year ago. Revenue totaled $26.17 billion, up 25% from a year ago.

Analysts surveyed by FactSet were expecting the company to report net income of $2.34 per share, on sales of $23.7 billion.

Advertising revenue totaled $25.44 billion, with growth driven by a 30% year-over-year increase in the average price per ad and a 12% increase in the number of ads delivered, the company said.

"We had a strong quarter as we helped people stay connected and businesses grow," Mark Zuckerberg, Facebook founder and CEO, said in a statement. "We will continue to invest aggressively to deliver new and meaningful experiences for years to come, including in newer areas like augmented and virtual reality, commerce, and the creator economy."

Facebook reported daily active users (DAUs) of 1.88 billion for March, up 8% year-over year. Analysts polled by FactSet had forecast 1.89 billion DAUs.

Monthly active users (MAUs) totaled 2.85 billion as of March 31, up 10% from a year ago, while FactSet had called for 2.86 billion MAUs.

Average revenue per user in the first quarter was $9.27 compared with the FactSet forecast of $8.40.

Facebook said it expects its 2021 capital expenditures to be in the range of $19 billion to $21 billion, down from an earlier estimate of $21 billion to $23 billion.

The company's headcount was 60,654 as of March 31, up 26% year-over-year.

Facebook posted its results one day after Google parent Alphabet  (GOOG) - Get Report beat Wall Street's first-quarter earnings expectations by a wide margin. Apple  (AAPL) - Get Report was also reporting earnings on Wednesday (Check out TheStreet’s live blog of Apple’s earnings). 

In January, Facebook easily beat Wall Street's fourth-quarter earnings expectations.

Earlier in the year, Facebook said it was referring its decision to indefinitely suspend former President Donald Trump's Facebook and Instagram accounts to its independent oversight board following the Jan. 6 insurrection at the U.S. Capitol.

Facebook Earnings: Stock Surges After Hours on Major Q1 2021 Beat

Variety 28 April, 2021 - 03:10pm

By Elaine Low

Shares of Facebook surged in after-market trading Wednesday, spiking more than 5% after the social networking giant recorded a major earnings and revenue beat for the first quarter of fiscal 2021, a period marked by strong advertising revenue growth and a 10% rise in monthly active users.

Facebook logged diluted per-share earnings of $3.30 on total revenue of $26.17 billion, well ahead of Wall Street’s expected earnings of $2.37 per share on revenue of $23.67 billion for the March-ended quarter.

Facebook’s after-hours spike came after closing up 1.1% on Wednesday, outpacing the broader market’s flattish day.

The company’s Q1 figures included 1.88 billion daily active users, up 8% year over year, and 2.85 billion monthly active users, marking a 10% pop from the prior-year quarter.

Facebook CFO David Wehner highlighted ad revenue growth, which was fueled by a 30% rise in average ad prices and 12% growth in the number of ads delivered.

“We expect second quarter 2021 year-over-year total revenue growth to remain stable or modestly accelerate relative to the growth rate in the first quarter of 2021 as we lap slower growth related to the pandemic during the second quarter of 2020,” he said in the company’s earnings statement. He expects Q3 and Q4  revenue growth rates to “significantly decelerate,” however, as Facebook laps the prior-year’s strong quarters.

Facebook expects annual expenses to amount to $70 billion to $73 billion, up from prior guidance for $68 billion to $73 billion. Capital expenditures are projected to be in the range of $19 billion to $21 billion, down from previous targets of $21 billion to $23 billion. For a consecutive quarter, the company chafed at Apple’s platform privacy changes, which will allow iPhone and iPad users to stop companies from tracking certain user data, noting that it expects those headwinds in the current quarter.

Facebook’s Ad Business Drives Surge in Revenue, Following Google’s Act

The Wall Street Journal 28 April, 2021 - 06:50am

The social-media giant said Wednesday its first-quarter earnings report reflects the past year’s trend of people spending more time and money online and advertisers redirecting their resources to take advantage of that shift. The parent of Facebook, Instagram and WhatsApp said the average price per ad and the number of ads it delivered during the January-through-March period increased.

Advertising revenue—which accounts for the lion’s share of Facebook’s total revenue—rose 46% from a year earlier to $25.44 billion. The company’s profit nearly doubled to $9.5 billion, or $3.30 a share.

Shares in the parent of Facebook, Instagram and WhatsApp rose more than 5% in after-hours trading, as both total revenue and profit beat Wall Street forecasts. The stock has gained 16% over the past three months through Wednesday’s close, compared with a more than 10% gain in the S&P 500.

The strong results came as Google parent Alphabet Inc. on Tuesday said it shattered sales records for the first quarter and that profit more than doubled. Also Tuesday image-sharing platform Pinterest Inc. said revenue jumped 78% and last week Snap Inc. said its quarterly revenue rose 66% as it gained more Snapchat users. Twitter Inc. is scheduled to release its quarterly financial report Thursday.

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