Facebook Reports Monster Q1 Earnings
Mark Zuckerberg became $8 billion richer last week after Facebook destroyed their earning expectations last quarter.
Facebook stock price was up more than 6% in after-hours trading on Wednesday last week after the company released its first quarter earnings, beating Wall Street’s expectations for earnings and revenue.
How did it compare to Wall Street Estimates?
- Earnings per share: $3.30 vs. $2.37 expected
- Revenue: $26.17 billion vs. $23.67 billion expected
- Daily active users (DAUs): 1.88 billion vs. 1.89 billion expected
- Monthly active users (MAUs): 2.85 billion vs. 2.86 billion expected
- Average revenue per user (ARPU): $9.27 vs. $8.40 expected
Some other insights form the quarter and earnings call!
Revenues grew by 48% compared to 2020.
- Due to higher ad prices (30% increases). This is a good sign as it shows how FB can fare in inflationary times with their monopoly on ads and control on pricing.
- Profit almost doubled to $9.5 B compared to 2020
- FB makes $48/ year per each user in North America.
- Facebook now has almost 3.5 billion monthly users across its main platforms: Facebook, Instagram, WhatsApp. This is almost half the worlds population!
He emphasized how this augmented reality headset would significantly add to the social network and customer experience in the long-run.