Facebook reported earnings that exceeded Street’s expectations. The social media company posted $ 3.88 billion EPS and $ 28.07 billion in revenue, exceeding the consensus estimates of $ 3.22 billion EPS and $ 26.41 billion in revenue.
Video transcription
SEANA SMITH: And we want to get some breaking news. Facebook released its earnings results. Jared Blikre has these numbers for us. Jared.
JARED BLIKRE: That’s right. We have some cool beats in the main metrics, but you can see that the stock dropped 5% there after – in the initial moments after launch. So, here are the numbers. Fourth-quarter revenue for the company reached $ 28.07 billion. The estimate was low, $ 26.41 billion. So cool beat there.
When we look at fourth quarter earnings per share, it came to $ 3.88. The estimate was lower at $ 3.22. And then, monthly active users, 2.8 billion. That’s what, a third of – in fact, more – the world population. Therefore, 2.8 billion. The estimate was 2.76 billion daily active users. So, daily, 1.84 billion. The estimate was 1.83 billion.
One of the headlines here that is catching my attention is that they continue to face significant uncertainties. And so, that could be one of the reasons why the stock is down here. In addition, they saw a favorable wind for the advertising business in the second half of 2020. This was due to all political advertising. Of course, this is also decreasing.
Some other measures of the report, the number of Facebook employees was 58,604 as of December 31. And just a few quotes from the report, they are seeing the revenue growth rate in the first and second quarters as being stable, moderately faster. But they see more significant headwinds in ad targeting in 2021. So, just to recap here, we have great hits both at the top and in the result, also in active monthly and daily users. But that prospect is probably scaring investors a little. It fell – the stock fell 5.7%. Boys.