Facebook's Revenue In Q2 2020 Exceeded Analysts' Forecasts
American Facebook Inc., which owns the world's largest social network, increased its financial indicators in the second quarter of this year, while they were significantly better than expected.
According to the company's press release, its net income in April-June was $5.18 billion, or $1.8 per share, compared with $2.62 billion, or $0.91 per share, received in the same period last year.
Revenue rose 11% to $18.69 billion from $16.89 billion a year earlier.
The average forecast of analysts polled by FactSet suggested earnings of $1.39 per share on revenue of $17.34 billion.
The number of users of the social network Facebook (accounts that were active at least once a month) at the end of June reached 2.7 billion people, an increase of 12% over the year. The number of daily active users also increased by 12% to 1.79 billion.
Experts predicted that the first indicator would average of 2.63 billion users.
Facebook Instagram, WhatsApp, or Messenger are used by about 2.47 billion people every day, and about 3.14 billion people use it at least once a month, according to the company's estimates. These indicators increased by 15% and 14%, respectively, over the year.
Facebook's ad revenue in the second quarter rose 10% to $18,321 billion, according to the report. At the same time, expenses increased by 4% to $12.724 billion.
The company said that CAPEX this year will amount to about $16 billion compared to the previously planned $14-16 billion, as it will resume building data centers earlier than planned.
Facebook's staff has grown by 32% over the past year to more than 52.5 thousand people.
The company's stock price jumped 6.7% in additional trading on Thursday after the report was published. Facebook's capitalization has grown by 14% since the beginning of this year and now stands at about $665.2 billion. The Standard & Poor's 500 stock index gained 0.6% over the period.