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Facebook's stock was up more than 7% in after-hours trading on Wednesday after the tech giant reported that it beat Wall Street's expectations on revenue and earnings per share. Facebook grew its ad revenue by 17% year-over-year, despite the fact that the digital ad market is experiencing unprecedented headwinds due to the coronavirus.

Why it matters: The fact that Facebook was able to beat top and bottom line revenue expectations amid the coronavirus crisis speaks to how strong the company's value proposition continues to be during the pandemic.

Yes, but: The company did issue rare guidance that the current period of uncertainty may continue to impact its business performance moving forward.

  • While Facebook said it has experienced increased engagement and expects it to continue, it added that it expects the spike in usage to come back down once stay-at-home orders are lifted.
  • In a statement, the company said it experienced "a significant reduction in the demand for advertising, as well as a related decline in the pricing of our ads, over the last three weeks of the first quarter of 2020."

By the numbers:

  • Earnings (EPS): $1.71 vs. $1.75 per share forecast by Refinitiv
  • Revenue: $17.74 billion vs. $17.41 billion forecast by Refinitiv
  • Daily active users (DAUs): 1.73 billion
  • Monthly active users (MAUs): 2.6 billion
  • Average revenue per user (ARPU): $6.95

The big picture: Facebook was the third major internet company to post strong Q1 earnings in the past week, suggesting that the biggest internet companies will continue their dominance over the advertising ecosystem as a result of the pandemic.

  • Snapchat and Google both posted revenue gains despite headwinds to the digital ad market.

Go deeper: Facebook's Q4 2019 earnings

Go deeper

Facebook allows employees to work from home until July 2021

Photo: Mateusz Slodkowski/SOPA Images/LightRocket via Getty Images

Facebook will allow its employees to work from home through at least July 2021, a spokesperson confirmed to CNN on Thursday.

The big picture: It joins fellow Big Tech giant Google with the extended move toward remote work amid the coronavirus pandemic. Other tech companies with significant confirmed remote work extensions include Amazon and Snapchat, which are allowing their workers to stay at home through at least the end of the year.

Aug 6, 2020 - Technology

Female members of Congress to Facebook: Do better

Photo: Graeme Jennings via Getty Images

Facebook must do better to protect women in politics, who face a barrage of sexism, hate and harassment on the platform, members of the Democratic Women Caucus including House Speaker Nancy Pelosi wrote to the social network Thursday.

Context: Facebook, under heavy scrutiny for misinformation, privacy and antitrust concerns, recently kept a doctored video of Pelosi up, though fact checkers labeled it as "partly false." The platform came under fire for not removing a doctored video of Pelosi in 2019 as well.

Video gaming growth soars thanks to pandemic

Illustration: Aïda Amer/Axios

Video game usage in the U.S. has skyrocketed during the pandemic, leading to record revenues and profits for gaming companies like Nintendo, Epic Games and Electronic Arts.

Why it matters: The pandemic has sped the rise of video gaming as a core consumer pastime, and the trend is unlikely to reverse even after life returns to normal. "What we're seeing is an acceleration of pre-existing trends," NPD Group gaming analyst Mat Piscatella told Axios. "It's like we jumped ahead two years."