Facebook share price up 4% on Q1 results revenue beat
Facebook's stock is up after a positive Q1 earnings report.
Facebook share price is up by 4% in US afterhours trading after a better-than-expected Q1 earnings report. Facebook's Q1 earnings exceeded Wall Street expectations.
Facebook earnings:key figures
| Earnings per share | $0.85 |
| Revenue | $15.08 billion |
| Daily active users | 1.56 billion |
| Monthly active users | 2.38 billion |
Facebook's share price rises 4% on Q1 results revenue beating estimates
Facebook’s Q1 earnings per share were $0.85, less than financial experts’ expectations of $1.62. Facebook’s earnings per share would have been $1.89 if not for a one-time legal expense related to a fine from the US Federal Trade Commission(FTC) that could top $5 billion in the wake of the Cambridge Analytica data mining scandal.
‘We estimate that the range of loss in this matter is $3.0 billion to $5.0 billion. The matter remains unresolved, and there can be no assurance as to the timing or the terms of any final outcome,’ said Facebook in a statement.
Facebook’s Q1 revenue was $15.08 billion, more than the expected $14.98 billion. The social media company’s daily active users were 1.58 billion, in line with expectations. The app’s monthly active users were 2.38 billion, also meeting expectations. Chief executive officer, (CEO), Mark Zuckerberg, spoke about Facebook’s Q1 results in a statement.
‘We had a good quarter and our business and community continue to grow. We are focused on building out our privacy-focused vision for the future of social networking, and working collaboratively to address important issues around the internet,’ said Zuckerberg.
How did Facebook’s Q1 results compare to other social media companies?
Facebook’s Q1 earnings were positive compared to Twitter. Twitter’s Q1 results also surpassed expectations.
What’s next for Facebook’s results?
Facebook’s earnings could continue to improve after the company pledged to invest in privacy measures in the aftermath of more data breaches. Chief operating officer, (COO), Sheryl Sandberg also touted the popularity of the corporation’s Stories feature.
‘Stories are an increasingly important growth opportunity. We are helping advertisers keep up with the shift in how people are sharing just as we did with mobile,’ said Sandberg.
Facebook’s Q1 results survive data breach scandals
Facebook’s Q1 earnings report proves that the popularity of the company can withstand any bad publicity. Despite the recent scandals, Facebook’s Q1 profits show that advertisers and users still want to be in partnership with the social app.
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