Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.
Alongside the earnings release, Facebook also gave an overview of the user activity and data on its platforms and revealed a dip in the Daily Active Users and Monthly Active Users in the U.S. and Canada.
Social media giant Facebook Inc (NASDAQ: FB) has released its third-quarter (Q3) earnings and the firm witnessed another profitable quarter despite the StopHateForProfit campaign which saw some of its customers shun its advertisement. Per the released Facebook (FB) Q3 earnings, the company grew its advertising revenue by 22% year-over-year at $21.221 billion as against the $17.383 billion reported this time last year.
As a complement, the company also reported a 7% dip in revenues from other sources coming in at $249 million as against the $269 million recorded in Q3 2019. With total costs and expenses made by the company for the third quarter coming in at $13,430, the operating income reported was $8.040 billion. Diluted Earnings Per Share (EPS) is $2.71, an increment of 28% from the $2.12 reported the year-ago period.
Facebook (FB) earnings and Q3 performance has been attributed to the continuous demand for the company’s services as most people work to recover from the pangs of the coronavirus pandemic.
“We had a strong quarter as people and businesses continue to rely on our services to stay connected and create economic opportunity during these tough times,” said Mark Zuckerberg, Facebook founder and CEO. “We continue to make significant investments in our products and hiring in order to deliver new and meaningful experiences for our community around the world,” said he.
Facebook also experienced a growth in revenue in the second quarter as reported by Coinspeaker and the third quarter performance shows a strong business fundamental in the company’s offerings. Following the earnings release, the Facebook stock surged 4.92% to close at $280.83 at the end of trading on Thursday but the current stock activities in the pre-market are bearish as evident by about 2.65% dip in the share price at the time of writing.
Facebook Q3 Earnings Unmoved with Dip in U.S. and Canada Active Users
Alongside the earnings release, the company also gave an overview of the user activity and data on its platforms and revealed a dip in the Daily Active Users (DAU), and Monthly Active Users (MAU) in the United States and Canada. With the coronavirus pandemic blamed for this, Facebook expects the DAUs and MAUs from these countries to drop further in the fourth quarter.
Nonetheless, Facebook’s Family monthly active people (MAP) representing daily visitors to all of the Facebook-owned apps was 3.21 billion as of September 30, 2020, and represents an increase of 14% year-over-year. Per the guidance for the fourth quarter, Facebook noted that it expects its “fourth quarter 2020 year-over-year ad revenue growth rate to be higher than our reported third quarter 2020 rate, driven by continued strong advertiser demand during the holiday season.”
As a trust to its anticipated performance, Facebook expects that the acceleration into the digital space stirred by the pandemic will continue to attract more businesses, particularly in its online commerce income stream.