Facebook’s First Quarter Earnings Beat Wxpectations

Facebook’s first quarter earnings beat expectations, and it is predicted that this quarter will be affected by iOS updates. The stock price soars by 7% before the market.

Social media Facebook (U.S.: FB) first-quarter profit beat expectations. Its turnover increased by 48% year-on-year to US$26.17 billion, and its profit rose by 94% to US$9.497 billion. With satisfactory performance of Facebook, its pre-market share price surged 7% on Thursday to a temporary price of US$328.94. Facebook CEO Zuckerberg said that he will continue to invest in new areas, including augmented reality (AR), virtual reality (VR), e-commerce and creator economy.

Facebook’s earnings per share for the first quarter were US$3.3, higher than market expectations of US$2.37, mainly due to a 30% year-on-year increase in the average price of advertisements per unit and a 12% increase in the number of advertisements.

Other main operating indicators, Facebook’s daily active users in the first quarter were 1.88 billion, slightly lower than market expectations of 1.89 billion. The number of monthly active users is 2.85 billion, and the market is estimated to be 2.86 billion.

According to Facebook’s guidance, revenue growth in the second quarter of 2021 can remain stable, or even faster than in the first quarter. This is mainly due to the fact that the performance in the second quarter of last year was greatly affected by the epidemic, but the growth in the third and fourth quarters of this year will slow down, and supervision is also expected Pressure and platform conversion will bring pressure, especially pointed out that the impact of Apple’s iOS 14.5 update will begin to surface in the second quarter.

Facebook has increased its annual spending forecast from US$68 billion to US$73 billion to US$70 billion to US$73 billion, reflecting the company’s increased investment in technology and product talent. The level of capital expenditure has been lowered from the booked 21 billion to 23 billion U.S. dollars to 19 billion to 21 billion U.S. dollars.