Facebook’s third-quarter revenue of $21.5 billion, net profit of $7.8 billion, a year-on-year increase of 29%

Friday, October 30, 2020, 17:46 GMT

Facebook released its unaudited financial report for the third quarter of fiscal year 2020 on Thursday, US local time, effective September 30, 2020. The financial report reveals that Facebook’s third-quarter revenue was 21,470 billion dollars, a rise of 22% from 17,652 billion dollars in the same period last year; net profit was 7,846 billion dollars, an increase of 29% from 6,091 billion dollars in the same period last year; profits per share was 2,71 dollars, and an increase of 28% compared to 2,12 dollars in the same period last year. After the financial report was released, Facebook shares dropped 1.35 percent in after-hours trading as of press time.

The following are the highlights of the third quarter earnings report from Facebook:

In the third quarter, Facebook ‘s revenue was 21.47 billion U.S. dollars, a rise of 22 percent from 17.652 billion U.S. dollars in the same time last year, beating the analyst estimate of 19.8 billion U.S. dollars.

In the third quarter, Facebook’s “other” income was $249 million, a 7 percent decrease from last year. This entails sales of augmented reality headsets from Oculus and video chat systems from Portal;

In the third quarter, Facebook’s net profit was US$ 7.846 billion, an improvement of 29 percent from US$ 6.091 billion in the same time last year.

In the third quarter, Facebook’s earnings per share were US$ 2.71, an improvement of 28 percent compared to US$ 2.12 in the same time last year, and the average expectation of analysts was US$ 1.91.

In the third quarter, Facebook’s monthly active users were 2.74 billion, a rise of 12 percent over the same time last year, and the average expectation of analysts was 2.7 billion.

In the third quarter, the number of daily active Facebook users was 1.82 billion, an improvement of 12 percent over the same timeframe last year, beating the estimate of analysts by 1.79 billion.

In the third quarter, Facebook’s average revenue per user ( ARPU) was $7.89, and the average analyst estimate was $7.32.

Facebook’s currency and cash reserves and marketable assets are estimated at US$ 55.62 billion as of September 30, 2020, and the number of workers is 56,653, a 32 percent rise year-on-year.

Mark Zuckerberg (Mark Zuckerberg), founder and CEO of Facebook, said: “In this tough period, users continue to focus on our services to remain linked and build economic opportunities, so we delivered strongly this quarter. We will continue to invest heavily in our products and staff recruiting to provide our communities around the world with fresh and meaningful experiences.”

Facebook Chief Financial Officer David Wehner said: “As predicted, we see that the number of regular active users and monthly active users of Facebook in the U.S. and Canada is second in the third quarter of 2020 relative to 2020.” The quarter deteriorated moderately. In the fourth quarter of 2020, we expect that this pattern will continue.

“He also said:” In the fourth quarter of 2020, we expect the year-on-year growth rate of advertisement sales to be higher than that of the third quarter of 2020, guided largely by the continuing strong demand for advertisers during the holiday season . In addition, orders from Oculus Quest 2 were very high. Strong, other revenues should benefit from this.

Facebook’s daily active users dropped to 196 million in the United States and Canada from 198 million previous to the first quarter. The business said that the number of consumers in the United States and Canada rose in the second quarter owing to the effects of the latest crown epidemic. The company warned that in the fourth quarter, it expects its number of users in the United States and Canada to stay constant or decrease.

In the third quarter, the number of monthly users in the company’s application series was 3.21 billion, Facebook reported, compared to 3.14 billion in the previous quarter. This statistic is used to calculate the cumulative number of users of Instagram, Messenger and WhatsApp, the major Facebook apps.

The boycott of “StopHateForProfit” does not appear to impact the advertisement profits of Facebook. The company’s advertisement sales rose by 22 percent year on year in the third quarter. More than 1,000 advertisers stopped social network ads in July in this boycott to protest the company’s hate speech and misleading information policies.

Facebook said that the company expects the fourth quarter ‘s advertisement sales growth rate to be higher than the third quarter, led by holiday demand.

Facebook stock settled at $280.83 at the close on Thursday, local time, a 4.92 percent rise from the corresponding trading day. The stock fell 1.35 per cent in after-hours trading as of press time after the earnings report was released. Facebook shares have risen 37 percent this year as of Thursday.


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