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Home / Business / Strong advertising revenue pushes Facebook to exceed expectations because the company says the boom in e-commerce is a favorable factor-TechCrunch

Strong advertising revenue pushes Facebook to exceed expectations because the company says the boom in e-commerce is a favorable factor-TechCrunch



Facebook The company today released its third-quarter financial report, which included revenue of $21.5 billion and net income of $7.8 billion. The company’s earnings per share during the three-month period were $2.71.

Analysts had expected that social giant Facebook’s earnings per share would be much smaller, at US$192 million, while earnings per share were US$1.91.

The company also reported that the average daily active users in September was 1.82 billion, an increase of 12% over the same period last year. Monthly active users were 2.74 billion, which also increased by 12%. Both results exceeded expectations.

It is worth noting that the number of Facebook employees has risen sharply this year, an increase of 32% compared with the same period last year. This exceeded its 22% year-on-year revenue growth. The company̵

7;s total expenses increased by 28%, again exceeding its revenue.

In after-hours trading, Facebook’s stock was effectively flat, and at the time of writing, the stock was up about 0.4%.

The company did not share the specific prospects for the fourth quarter of 2020 or 2021 in the report. Instead, it pointed out that “the year-on-year growth rate of advertising revenue in the fourth quarter of 2020 will be higher than [its] Reported the price for the third quarter of 2020″ and the increase in non-advertising revenue from the sales of the company’s new VR headset Oculus Quest 2.

Facebook did say that 2021 will bring “great uncertainty.” Potential obstacles for Facebook will be the European regulatory environment and the feasibility of transatlantic data transmission. Facebook said, “As these developments develop, it closely monitors the potential impact on our European business.”

Analysts predict that Facebook’s revenue in the fourth quarter of 2020 will reach US$24.25 billion and earnings per share will be US$2.67. By 2021, revenue will reach US$100 billion and earnings per share will reach US$10.26.

Does all of this matter? The core advertising market that seems to be able to support Snap’s own performance also helped fill the gaps in Facebook. Facebook noted in its earnings that it believes that “the pandemic has promoted the transition of businesses from offline to online,” leading to “increased demand for advertising due to this acceleration.” At the same time, Twitter’s advertising revenue only increased slightly. , An increase of about 8% year-on-year, because advertisers’ taste budgets are still fluctuating.

This is the tailwind of secular transformation. For Facebook, this could mean a good year of growth.


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