Facebook revenue rises 48%, users slightly below expectations

 Facebook revenue rises 48%, users slightly below expectations

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Facebook stock price was up more than 6% in after-hours trading on Wednesday after the company released its first-quarter earnings, beating Wall Street’s expectations for earnings and revenue.

Here’s how the social media giant fared in the quarter, relative to estimates compiled by Refinitiv:

  • Earnings: $3.30 per share vs. $2.37 per share forecast
  • Revenue: $26.17 billion vs. $23.67 billion expected
  • Daily active users (DAUs): 1.88 billion vs. 1.89 billion forecast by FactSet
  • Monthly active users (MAUs): 2.85 billion vs. 2.86 billion forecast by FactSet
  • Average revenue per user (ARPU): $9.27 vs. $8.40 forecast by FactSet

The company reported revenue of $26.17 billion for the quarter, which was up 48% compared with a year prior. Facebook’s net income grew 94% to $9.5 billion, from $4.9 billion a year prior.

Facebook attributed the significant increase in revenue to a 30% year-over-year increase in the average price per ad and a 12% increase in the number of ads delivered.

The company also said it expects its 2021 capital expenditures to be in the range of $19-21 billion, which is down from the prior estimate of $21-23 billion that it had provided.

In the U.S. and Canada, Facebook’s user base remained flat at 195 million daily active users for the second consecutive quarter. Its user base in Europe increased to 309 million daily active users, up from 308 million in the fourth quarter. 

This is breaking news. Please check back for updates.

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