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Facebook: first quarter profit almost doubles

Facebook: first quarter profit almost doubles

Buoyed by its investments in online commerce, Facebook nearly doubled its net income in a year to $9.5 billion and $3.30 per share in the first quarter. Revenue rose 48% to $26.2bn against a consensus of $23.67bn, according to IBES data from Refinitiv.

 

The US giant’s quarterly revenue was well above market expectations, and the market praised the company’s performance, with its stock rising 5 percent in after-hours trading on Wall Street Wednesday. “A year ago, there were critical questions about Facebook’s ability to deal with the impact of the pandemic on its business. We now know that the group has not only resisted, it has strengthened,” commented Aho Williamson, an analyst at eMarketer.

 

Indeed, during the health crisis, Mark Zuckerberg’s company invested massively in advertising products that facilitate transactions directly on its sites and mobile applications.

 

“We will continue to invest aggressively to create remarkable new experiences for years to come, including in areas that are not yet fully explored such as augmented and virtual reality, e-commerce and the influencer economy,” said Mark Zuckerberg in the statement.

 

Facebook was therefore able to exploit the increase in online traffic during the pandemic to perfection, and was therefore buoyed by the increase in advertising purchases made by companies on the platform during the pandemic.

 

According to eMarketer, Facebook is well on its way to surpassing $100 billion in net advertising revenue for the first time in 2021, and thus retaining the second position in online advertising in terms of global market share (23.7%), behind Google (28.6%), which also outperformed expectations in the first quarter.

 

The social network expects revenue growth in the second quarter to be flat or slightly up.

 

However, he warned that the third and fourth quarters could see a “significant” decline from the strong growth seen in the same periods last year.

 

Facebook in figures

 

It is fair to say that the pandemic has been positive for the company. Indeed, nearly 1.9 billion people use Facebook every day, 8% more than a year ago, according to an earnings release.

 

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

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And some 3.45 billion users worldwide use at least one of the group’s platforms (Facebook, Instagram, Messenger, WhatsApp) every month clique neste link.

 

In addition, Facebook has just announced that its teams are working with Instagram on a new tool to help content creators generate even more money. The Facebook group also mentioned the existence of a future platform to facilitate exchanges between influencers and brands.

 

Mark Zuckerberg said in a live chat with Adam Mosseri, Instagram’s CEO: “We think that if we help creators make more money on their content, it will help a broader creator economy emerge. “

 

Lire aussi > GUCCI AND FACEBOOK FILE SUIT AGAINST COUNTERFEIT RETAILER

 

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