Facebook earnings Q1 2019

Facebook earnings Q1 2019

Shu Zhang | Reuters

Facebook founder and CEO Mark Zuckerberg meets Founder and Executive Chairman of Alibaba Group Jack Ma (not pictured), at the China Development Forum in Beijing, China, March 19, 2016. 

Facebook stock rose nearly 5% in after hours trading despite the company announcing that it could take a one-time charge of as much $5 billion due to an ongoing Federal Trade Commission inquiry.

The company exceed revenue expectations and matched estimates for its daily active user growth. Here’s what Facebook reported:

  • Earnings: 85 cents per share
  • Revenue: $15.08 billion, vs. $14.98 billion, forecast by Refinitiv
  • Daily active users: 1.56 billion, vs. 1.56 billion forecast by FactSet
  • Monthly active users: 2.38 billion, vs. 2.37 billion forecast by FactSet
  • Average revenue per user: $6.42, vs. $6.39 forecast by FactSet

“We had a good quarter and our business and community continue to grow,” said CEO Mark Zuckerberg in a statement. “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.”

The company is undergoing a major transition from News Feed ads as it grows ad revenue from its newer Stories products. Already, Facebook-owned Instagram claims to have 500 million daily Stories users.

In a March memo, CEO Mark Zuckerberg wrote that the future of the company will be “private, encrypted services.” The company is working to integrate the messaging functions of WhatsApp, Messenger and Instagram, and Zuckerberg said he expects “Messenger and WhatsApp to become the main ways people communicate on the Facebook network.” Investors will be looking for signs it can shift its business to focus more on privacy while continuing to grow revenue and users.

Facebook shares are up more than 35% in 2019.

This is a breaking news story. Please check back for updates.

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