Facebook beats consensus in Q1, driven by advertising revenue

(Reuters) – Facebook on Wednesday posted quarterly revenue above market expectations, driven by increased advertising purchases made by companies on the platform during the coronavirus health crisis, which caused a surge in online traffic.

The title of the group rose 6.6% in post-closing trade.

Facebook’s revenue, mostly from advertising, was $ 26.17 billion in the January-March period, beating the consensus of $ 23.67 billion according to IBES data from Refinitiv .

In its forecasts, the American social network said it expected its revenue growth in the second quarter to be stable or up slightly.

He warned, however, that the third and fourth quarters could result in a “significant” decline compared to the strong growth recorded in the same periods last year.

Facebook reported a 10% increase in its monthly active users, to 2.85 billion, in line with analysts’ expectations.

Net income for the first quarter was $ 9.5 billion and $ 3.30 per share, up from $ 4.9 billion and $ 1.71 per share a year earlier. Analysts on average expected a net profit of $ 2.37 per title.

(Noor Zainab Hussain, Sheila Dang and Elizabeth Culliford; French version Jean Terzian)

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