Facebook Takes $3B FTC Charge
April 25, 2019
Facebook reported financial results for the quarter ended March 31, 2019. The firm reported earnings of 85 cents per share. As to revenue, Facebook noted $15.08 billion with investors looking for $14.98 billion.
Daily active users came in at 1.56 billion, and were in line with expectations. Monthly active users were reported at 2.38 billion, with 2.37 billion expected. Average revenue per user was $6.42 with only $6.39 expected.
"We had a good quarter and our business and community continue to grow," said Mark Zuckerberg, Facebook founder and CEO. "We are focused on building out our privacy-focused vision for the future of social networking, and working collaboratively to address important issues around the internet."
First Quarter 2019 financials includes a $3.0 billion legal expense accrued in the first quarter of 2019 related to the ongoing U.S. Federal Trade Commission (FTC) matter. As this expense is not expected to be tax-deductible, it had no effect on their provision for income taxes. Excluding this expense, their operating margin would have been 20 percentage points higher, their effective tax rate would have been 14 percentage points lower and their diluted EPS would have been $1.04 higher.