Facebook Shares rose in after-hours trading on Wednesday after the company announced its fourth-quarter earnings. The company warned of future changes. Apple A reversal of iOS 14 and pandemic trends could hurt the advertising business.
The numbers are:
- Revenue: $ 3.88 per share versus Refinitiv forecasts $ 3.22 per share
- Revenue: $ 28.70 billion vs. Refinitiv forecasts $ 26.44 billion
- 1 day active user (DAU): 1.84 billion pairs FactSet forecasts 1.83 billion
- Monthly Active User (MAU): 2.8 billion pairs FactSet forecasts 2.76 billion
- Average Revenue Per User (ARPU): FactSet Predicts $ 10.14 vs. $ 9.49
Facebook CEO Mark Zuckerberg said the company is currently considering steps to reduce the amount of political content users see in their news feeds. The announcement came in response to the January 6 riots at the US Capitol.
“One of the most feedback we receive from our community right now is that people don’t want politics or struggle to take over their experience with our services,” Zuckerberg said. I will.
In addition, Zuckerberg has announced that Facebook will permanently stop recommending citizenship and political organizations to users around the world. This happened after the company decided in October to temporarily suspend recommending these groups to US users for the 2020 US presidential election.
“This is a continuation of the work we’ve been doing for some time to cool down and discourage conflicting conversations,” Zuckerberg said.
The company said the shift to online commerce and products benefited in 2020 during the pandemic. Facebook said these trends could slow or reverse and “headwind to increased advertising revenue. It could be. “
The company also said that Apple’s privacy changes in iOS 14 could affect Facebook’s ability to target ads and could impact its business in the second half of the first quarter. I warned you.
Zuckerberg said Facebook increasingly sees Apple as one of its biggest competitors..
“Apple may say it’s doing this to help people, but the move is clearly following their competitive interests,” Zuckerberg said. “It’s important for people to understand this dynamics, because we and others will face it in the near future.”
In the United States and Canada, Facebook’s user base fell from 196 million a quarter ago to 195 million. This is the second consecutive quarter that the company has lost users in the United States and Canada.
The user base in Europe has grown to 308 million daily active users, with 305 million, the first growth in the region for the first time in three quarters.
Facebook said it had 3.3 billion monthly users across its app family, compared to 3.21 billion in the previous quarter. This metric is used to measure the total user base for Facebook’s main apps Instagram, Messenger, and WhatsApp.
Facebook’s “Other” revenue was $ 858 million in the quarter, up 156% year-over-year. That accounted for more than 3% of Facebook’s revenue this quarter. This includes selling Oculus virtual reality headsets and portal video chat devices. During the pandemic, sales grew as people were trapped in their homes looking for entertainment and ways to stay in touch with their loved ones.
Facebook Chief Financial Officer David Wehner said the increase in “other” revenue was due to the strong holiday sale of the Oculus Quest 2 virtual reality headset.
The company has announced a buyback of up to $ 25 billion in Facebook shares.
Facebook (FB) Revenue Q4 2020
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