Facebook beats on earnings
In earnings for the 2020 third quarter released Thursday, Facebook reported modest user growth but revenue increases that beat Wall Street expectations.
Why it matters: Facebook's business looks resilient and thriving despite — or maybe because of — the pandemic.
Yes, but: The company did note that user growth in the U.S. and Canada was down slightly from the second quarter, which it attributed to lockdown protocols around the pandemic being lifted.
By the numbers, per CNBC:
- Earnings: $2.71 cents per share, vs $1.91 per share forecast by Refinitiv
- Revenue: $21.47 billion, vs $19.8 billion forecast by Refinitiv
- Daily active users (DAUs): 1.82 billion vs. 1.79 billion forecast by FactSet
- Monthly active users (MAUs): 2.74 billion vs. 2.7 billion forecast by FactSet
- Average revenue per user (ARPU): $7.89 vs. $7.32 forecast by FactSet
The big picture: The report comes the day after CEO Mark Zuckerberg testified virtually on Capitol Hill, along with executives of other tech giants, about an array of issues, including censorship and content moderation.
What's next: The company forecast a few pandemic-related headwinds going into next year, but says it's on track to grow its ad revenue next quarter during the holiday shopping season.