In the backdrop of a subdued ad environment as a result of the coronavirus Facebook (NASDAQ:FB) reported results that were in-line EPS and Revenue estimates. The stock is up 7% in after-hour trading.
Revenue of $17.73 billion beat consensus of $17.22 billion (3% beat) while EPS of $1.71 was in-line with consensus.
Analyst earnings estimates had already been slashed by -20% since the beginning of the year as a result of the coronavirus pandemic.
Source: YCharts
Users continued to grow with monthly active users (MAU) up to 2.6 billion from 2.5 billion last quarter and 2.3 billion the same time last year.
Revenue per user (ARPU) hit $5.92 this quarter, a large drop from $8.43 last quarter and 4.5% higher $5.66 a year ago.
Prior to results Facebook had under-performed it’s social advertising peers and the Nasdaq composite YTD.
YTD Performance: Facebook, Alphabet, Twitter & Nasdaq 100
Source: YCharts
Facebook’s quarterly year-on-year revenue growth remains superior to it’s peers, growing 17% in it’s latest quarter y/y.
Quarterly YoY Revenue Growth
Source: YCharts
Facebook continues to maintain it’s commanding lead in terms of profitability, the EBITDA margin (a proxy for cashflow) is higher than all it’s social peers substantially.
Facebook Margins Significantly Higher than Peers
Source: YCharts
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