Actions of Facebook, Inc. (NASDAQ: FB) traded higher by more than 8% after reporting second-quarter results.
Q2 Review: Facebook said it earned $ 1.80 a share in the second quarter with revenue of $ 18.69. In comparison, Street analysts expected Facebook to earn $ 1.39 a share in revenue of $ 17.4 billion.
Advertising revenue, most of the sales, increased from $ 16.624 billion last year to $ 18.321 billion. “Other” income increased from $ 262 million to $ 366 million.
Net income increased from $ 2,616 billion last year to $ 5,178 billion, while operating margin improved from 27% to 32%.
Total costs and expenses were 4% higher year-over-year at $ 12.724 billion.
Operational update: Facebook noted that daily active users (DAUs) averaged 1.79 billion in June, up 12% year-over-year. Monthly active users (MAU) increased 12% to 2.7 billion during the same time period.
Cash and cash equivalents and marketable securities at the end of the quarter was $ 58.24 billion. Of particular interest, the company paid approximately $ 5.8 billion on July 7 for its investment in Jio Platforms.
The workforce increased 32% year-over-year to 52,534.
Panorama: Facebook noted that growth in advertising revenue in the first three weeks of July increased by 10%, roughly in line with what was seen in the second quarter. The company expects full-quarter growth to be more or less similar to its performance in July.
Total expenses for 2020 decreased from a previous range of $ 52 billion to $ 56 billion to $ 52 billion to $ 55 billion. Capital expenditures for the full year also decreased from a previous range of $ 14 billion to $ 16 billion to around $ 16 billion.
“However, there is still great uncertainty in our outlook, and our full-year capital expenditures will depend on how the pandemic affects our ability to build data centers and upgrade equipment,” the company said.
The stock rose 8.1% to $ 253.56 per shareholder at the time of publication in the after-hours session.
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