Jan 28, 2021
Facebook beats quarterly revenue estimates
Jan 28, 2021
Facebook Inc beat analysts' estimates for quarterly revenue on Wednesday, powered by increased ad spending by businesses to capitalize on a holiday shopping season driven online by the pandemic.
The results validate the company's foray into e-commerce with Instagram Shopping and Facebook Marketplace that banked on the trend of social shopping, which picked up pace last year as outdoor recreational activity dwindled due to COVID-19 associated curbs.
The company has launched a slew of new e-commerce products such as Facebook Pay and Facebook Shops that enable in-app purchases across the company's suite of apps, including Instagram and WhatsApp.
Monthly active users rose 12% to 2.80 billion, above the 2.75 billion expected by analysts.
Total revenue, which comprises primarily of advertising revenue, rose to $28.07 billion in the fourth quarter ended Dec. 31 from $21.08 billion, a year earlier.
Analysts on average estimated quarterly revenue of $26.44 billion, according to IBES data from Refinitiv.
Net income came in at $11.22 billion, or $3.88 per share, compared with $7.35 billion, or $2.56 per share, a year earlier.
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