Quarterly Facebook profits doubled

In the first quarter of 2020, Facebook’s net profit doubled in annual terms to $4.902 billion, or $1.71 per share, compared to $2.429 billion, or $0.85 per share a year earlier.

The company’s quarterly revenue increased 18% to $17.737 billion from $15.077 billion a year earlier.

Interviewed FactSet expected profit at $1.74 per share with revenue of $17.33bn.

The number of users of social network Facebook (account activity at least once a month) at the end of March reached 2.6 billion people with a forecast of 2.55 billion. For the year the figure rose by 10%.

The number of users active daily increased by 11% – to 1.73 billion.

The company estimates that about 2.36 billion people use Facebook, Instagram, WhatsApp or Messenger daily and about 2.99 billion people at least once a month. These figures have increased by 12% and 11% respectively over the year.

Facebook advertising revenue in the first quarter rose by 17% to $17.44 billion, according to the report. At the same time, expenses increased by 1% to $11.844 billion.

The company also announced its intention to reduce capital expenditures this year to $14-16 billion compared to the previously planned $17-19 billion.

Over the last year Facebook staff grew by 28% and reached almost 48.3 thousand people.

The company’s shares jumped by 10.5% at the additional trading on Wednesday after the publication of the statements.

Facebook capitalization increased by 0.6% over the last 12 months and now exceeds $521 bln. Standard & Poor’s 500 stock index added 0.5% over this period.