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LIVE: Facebook shrugs off coronavirus concerns to report 'stability' in ad revenue, sending stock soaring 10% (FB)

FILE PHOTO: Facebook Chairman and CEO Mark Zuckerberg testifies at a House Financial Services Committee hearing in Washington, U.S., October 23, 2019. REUTERS/Erin Scott
  • Facebook announced its Q1 2020 earnings on Wednesday.
  • Its user numbers surged, while its revenue was better than Wall Street was expecting.
  • The results pushed the company's stock up 10% in after-hours trading.
Facebook's stock surged 10% in after-hours trading on Wednesday, after the company announced surging user numbers and better-than-expected financial earnings for the first quarter that helped to assuage traders' concerns about the potential impact of the pandemic on its business.
In the first three months of the year, Facebook netted $17.74 billion in revenue, up 18% year-over-year, though it says it experienced a "significant reduction in the demand for advertising, as well as a related decline in the pricing of our ads, over the last three weeks of the first quarter of 2020."
Meanwhile, its user numbers and engagement have surged, as people trapped inside turn to the company's product to communicate with friends and family. Its daily and monthly active user numbers for the core Facebook app also grew by double-digits year-over-year, to 1.73 billion and 2.6 billion respectively. The data figures "[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," Facebook said in a press release.
"We expect that we will lose at least some of this increased engagement when various shelter-in-place restrictions are relaxed in the future."
Facebook also took the unusual step on Wednesday on releasing some financial information relating to its second quarter early. Advertising revenues for the first three weeks of April have been roughly unchanged from the same time period a year ago, it said — a stark contrast to its typical double-digit growth, but an indicator that the business is managing to weather the crisis.
Here are the key numbers, as well as what Wall Street was expecting:
  • Revenue: $17.74 billion, up 18% year-over-year ($17.48 billion expected)
  • Earnings Per Share (GAAP): $1.71 ($1.75 expected)
  • Daily Active Users: 1.73 billion, up 11% year-over-year
  • Monthly Active Users: 2.6 billion, up 10% year-over-year
On Tuesday, rival Google announced its Q1 2020 earnings, including a "significant slowdown in ad revenues" in March.
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SEE ALSO: Facebook has placed a big bet on expanding its focus to online shopping and payments. The pandemic is making that move look smarter than ever.
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* This article was originally published here

https://www.businessinsider.com/facebook-q1-earnings-2020-4

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