LIVE: Facebook shrugs off scandals and regulatory woes to announce another strong quarter (FB)
Category : entrepreneur
- Facebook has once again announced strong financial results for the previous quarter, despite scandals and regulatory woes.
- The Silicon Valley firm beat Wall Street’s expectations for both profits and revenue.
- Its stock jumped by around 3% in after-hours trading on the news.
Facebook has shrugged off scandals and growing regulatory concerns to post another strong quarter, sending its stock jumping around 3% in after-hours trading.
The Silicon Valley-based social networking giant beat Wall Street analysts’ expectation on both profits and revenues during Q3 2019, in another sign that the company’s very public woes over the past two years are failing to damage the fundamentals of its business.
Its revenues from July to September were $17.65 billion, up 29% on the same time period a year ago, and its userbase grew by around 9% annually.
And it pulled in $6.09 billion in net profits — up 19% on last year.
Here are the key numbers, as well as what Wall Street was expecting:
- Revenue: $17.65 billion, up 29% year-on-year ($17.35 billion expected)
- Earnings per share (GAAP): $2.12 ($1.91 expected)
- Net income: $6.09 billion, up 19% year-on-year
- Daily active users 1.62 billion, up 9% year-on-year (1.61 billion expected)
- Monthly active users: 2.45 billion, up 8% year-on-year (in line with expectations)
Analysts had been predicting another strong quarter from Facebook. The Silicon Valley social networking giant has been beset by scandals over the past two years — but its core business has been largely unscathed. The company is running “almost flawlessly,” analysts at Wedbush wrote recently.
In a statement, CEO Mark Zuckerberg said: “We had a good quarter and our community and business continue to grow. We are focused on making progress on major social issues and building new experiences that improve people’s lives around the world.”
Also on Thursday, Facebook announced that Dr. Susan Desmond-Hellman, CEO of the Bill and Melinda Gates Foundation, is stepping down from its board of directors. In a corporate filing, Facebook said her “decision to resign was based on personal reasons and was not due to any disagreement with Facebook on any matter relating to its operations, policies or practices.”
Business Insider is covering Facebook’s financial results live as they come in. Refresh this page for updates or click here for the latest updates.
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