Facebook Tops Forecasts - Revenue
April 29, 2021
Facebook reported financial results
for the quarter ended March 31, 2021.
The firm had respective EPS and revenue of $3.30 per share and $26.17 billion.
Expectations were $2.37 per share and $23.67 billion.
Daily active users (DAUs) were 1.88 billion
with 1.89 billion forecast. Monthly active users (MAUs) came in at 2.85 billion
against. 2.86 billion which was expected. Average revenue per user (ARPU) landed
at $9.27 with only $8.40 anticipated.
"We had a strong quarter as we helped people stay connected and businesses
grow," said Mark Zuckerberg, Facebook founder and CEO. "We will continue to
invest aggressively to deliver new and meaningful experiences for years to come,
including in newer areas like augmented and virtual reality, commerce, and the
Dave Wehner, chief financial officer of
Facebook added, "We are pleased with the strength of our advertising revenue
growth in the first quarter of 2021, which was driven by a 30% year-over-year
increase in the average price per ad and a 12% increase in the number of ads
delivered. We expect that advertising revenue growth will continue to be
primarily driven by price during the rest of 2021.
We expect second quarter 2021 year-over-year total revenue growth to remain
stable or modestly accelerate relative to the growth rate in the first quarter
of 2021 as we lap slower growth related to the pandemic during the second
quarter of 2020. In the third and fourth quarters of 2021, we expect
year-over-year total revenue growth rates to significantly decelerate
sequentially as we lap periods of increasingly strong growth. We continue to
expect increased ad targeting headwinds in 2021 from regulatory and platform
changes, notably the recently-launched iOS 14.5 update, which we expect to begin
having an impact in the second quarter. This is factored into our outlook.
is also continuing uncertainty around the viability of transatlantic data
transfers in light of recent European regulatory developments, and like
companies across a wide range of industries, we are closely monitoring the
potential impact on our European operations as these developments progress.
We expect 2021 total expenses to be in the range of $70-73 billion, updated from
our prior outlook of $68-73 billion. The year-over-year growth in expenses is
driven by investments in technical and product talent, infrastructure, and
consumer hardware-related costs. We remain committed to investing for long-term
growth and our expense outlook reflects the underlying strength of our business
and the compelling investment opportunities we see across our products,
including consumer hardware.
We expect 2021 capital expenditures to be in the range of $19-21 billion, down
from our prior estimate of $21-23 billion. Our capital expenditures are driven
primarily by our investments in data centers, servers, network infrastructure,
and office facilities."