Facebook beats estimates of quarterly revenue and user growth

Jul 30 (Reuters) – Facebook Inc beat analyst estimates for quarterly revenue on Thursday as companies used their digital advertising tools to take advantage of a surge in online traffic during the coronavirus pandemic. Illustrative file photo of a 3D print of the Facebook logo next to dollar bills. May 25, 2020. REUTERS / Dado Ruvic Shares of the world’s largest social network rose more than 8% in post-close trades on Wall Street. Revenue growth was the slowest in history since the firm went public, at 11%, although it exceeded analysts’ expectations that they had expected it to sink to 3%, according to IBES data from Refinitiv. Growth of 18% in the first quarter of this year was the slowest on record. Facebook projected it also expects third-quarter ad revenue to grow faster than Wall Street estimates, despite the advertising boycott it suffered in July. Ad sales, which comprise almost all of Facebook’s revenue, rose 10% to $ 18.3 billion in the second quarter. Monthly active users grew to 2.7 billion in the second quarter, above estimates of 2.6 billion. Investors eagerly awaited the second-quarter results, the first period showing the full impact of the virus-related measures. Facebook said in April that it saw signs of sales stability in the first three weeks of the quarter after a decline in March. Revenue growth for Facebook, the world’s second-largest internet ad seller after Google, for Alphabet Inc., had stalled even before the pandemic, although it still reached over 20% during 2019. Chief Executive Officer Mark Zuckerberg said in April that Facebook will control costs a little this year in response to the pandemic, without “slamming” on strategic investments. Total costs and expenses increased 4% to $ 12.7 billion in the second quarter, compared to $ 12.5 billion that analysts had forecast. Earnings, meanwhile, reached 5.2 billion, or $ 1.80 per share, in the three months ended June 30, compared to 2.6 billion in the same quarter of the previous year. Analysts had expected a profit of $ 1.39 per share. Report by Katie Paul in San Francisco and Subrat Patnaik in Bengaluru. Edited in Spanish by Rodrigo CharmeOur Standards: The Thomson Reuters Principles