Facebook (NASDAQ: FB) reported first-quarter earnings of 85 cents per share, down 50% year-over-year. The earnings take into account a one-time legal expense, excluding which, the bottom line would have been $1.89 per share.
Analysts had expected just $1.65 per share, predicting that the higher expenses required to establish better privacy security would weigh on its bottom line.
The one-time costs were associated with the inquiry of the Federal Trade Commission into Facebook’s user data practices. The social media giant estimates the range of loss in this matter between $3 billion and $5 billion.
LISTEN TO THE FULL EARNINGS CONFERENCE CALL: FACEBOOK Q1 2019
Total revenue jumped 26% to $15.08 billion, surpassing analysts’ expectation of $14.96 billion.
Facebook shares gained 4.7% during after-market trading on Wednesday. The stock has rallied 35% in the year-to-date period.
Mobile advertising revenue represented approximately 93% of advertising revenue in the first quarter of 2019, up from about 91% in the year-over period.
READ: 4 THINGS YOU NEED TO KNOW AHEAD OF AMAZON’S Q1 RESULTS
Daily Active Users increased 8% to 1.56 billion, while Monthly Active Users gained 8% to 2.38 billion. The popularity of its existing features like video, coupled with the addition of new features like music, are keeping users engaged at times of data privacy scandals.
Facebook is estimated to spend close to $4 billion this year to boost safety on its website. The social media giant has its share of litigation issues and might face fines that could run into billions of dollars, even as Facebook’s CEO Mark Zuckerberg appears to favor federal regulation that several parties have been advocating in recent times.
Rivals shine
Rivals Twitter (NYSE: TWTR) and Snap (NYSE: SNAP) both reported upbeat first-quarter results on Tuesday. Twitter reported solid earnings and revenue growth for the first quarter of 2019 amid stable growth in daily active users, driving the microblogging platform’s stock higher in the pre-market trading.
Snap’s revenue soared 39% to $320.4 million, while net loss shrunk 20% to $310.4 million.
Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!
Most Popular
INTU Earnings: Intuit Q1 2025 adj. profit rises on higher revenues
Financial technology company Intuit Inc. (NASDAQ: INTU) Thursday announced results for the first quarter of 2025, reporting a modest increase in adjusted earnings. The Mountain View-headquartered company’s first-quarter revenue came
Riding the AI wave, Nvidia looks set to stay on the high-growth path
After delivering strong results for the third quarter, Nvidia Corporation (NASDAQ: NVDA) this week said the launch of its new-generation Blackwell chip is on track. The company is thriving on
Target (TGT): A look at some of the challenges faced by the retailer in 3Q24
Shares of Target Corporation (NYSE: TGT) stayed green on Thursday, recovering from the stumble it took a day ago after delivering disappointing results for the third quarter of 2024 and
Comments