Facebook beats estimates of quarterly revenue and user growth

Illustrative file photo of a 3D print of the Facebook logo next to dollar bills. May 25, 2020. REUTERS / Dado Ruvic reuters_tickers This content was published on July 30, 2020 – 10:24 PM July 30, 2020 – 10:24 PM By Katie Paul and Subrat Patnaik Jul 30 (Reuters) – Facebook Inc exceeded analyst estimates on Thursday on quarterly revenue, as companies used their digital advertising tools to take advantage of an increase in online traffic during the coronavirus pandemic. Shares in the world’s largest social network rose more than 8% in post-close Wall Street operations. 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 down” 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 Charme)