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Facebook increased its advertising revenue in the quarter and reassured investors. The action sharply increases afterwards.
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Facebook had a profit of $ 1.71 per share. According to analysts Bloomberg asked, that was also what was expected.
This is higher than earnings per share of $ 0.85 in the first quarter of 2019.
Sales totaled $ 17.74 billion, up from $ 15,077 billion in the same quarter last year. It was expected to reach $ 17.30 billion.
The internet giant released its quarterly report after Wall Street closed on Wednesday.
The stock is skyrocketing in the wake of Wall Street. Right after the quarterly report, turnout rose above 8 percent.
Increased advertising revenue.
In the first quarter, Facebook had $ 17.44 billion in advertising revenue, up from $ 14.91 billion in the first quarter of 2019.
However, Facebook writes that they saw a “significant decrease” in demand and the price of advertising in the last three months of the quarter that ended in March.
There was a lot of excitement ahead of time about whether there was a decrease in ad revenue and how it affected the first quarter result.
Facebook does not provide an accurate estimate of revenue for the year due to the uncertain situation, the company writes.
However, the press release states that they have seen a stabilization of advertising revenue in April after the sharp decline in March.
Record number of users
Facebook says they have a 10 percent increase in monthly active users (MAU) compared to the same quarter of 2019.
At the end of March 2020, Facebook had 2.6 billion users. That’s a new record, Facebook writes in the quarterly report.
On March 24, Facebook wrote in a blog post on its own websites that they had seen an increase in the number of users. During March, the number of messages sent increased by 50 percent in the countries most affected by the crown. In the same countries, Facebook-owned video calls on Messenger and Whatsapp doubled.
The company experienced the largest increase in the use of messaging services, where there is no advertising. But Facebook also saw a slight increase in the number of people watching the news, the company wrote in March.
Last week, Facebook launched the Messenger Rooms service that allows up to 50 people to make a video call together.
See the quarterly report here.
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