How Facebook Did It Again in Q2 Despite Huge Bottom-Line Miss

Media

Published: July 24, 2019 4:17 pm

Last Updated: January 30, 2020 6:10 pm

Facebook Inc. (NASDAQ: FB) released second-quarter financial results after markets closed Wednesday. The social media giant said that it had $0.91 in earnings per share (EPS) and $16.9 billion in revenue, compared with consensus estimates that called for $1.88 in EPS and $16.5 billion in revenue. The same period of last year had $1.74 in EPS and $13.23 billion in revenue.

During the quarter, daily active users were 1.59 billion on average for June 2019, an increase of 8% year over year. At the same time, monthly active users increased by 8% to 2.41 billion.

Mobile advertising revenue represented roughly 94% of advertising revenue for the second quarter of 2019, up from about 91% of advertising revenue in the same period last year.

Additionally, management estimates that more than 2.1 billion people now use Facebook, Instagram, WhatsApp or Messenger every day on average, and around 2.7 billion people use at least one of this family of services each month.

Mark Zuckerberg, Facebook founder and CEO, commented:

We had a strong quarter and our business and community continue to grow. We are investing in building stronger privacy protections for everyone and on delivering new experiences for the people who use our services.

Shares of Facebook closed Wednesday at $204.66, in a 52-week range of $123.02 to $218.62. The consensus price target is $223.19. Following the announcement, the stock was up about 3% at $211.25 in the after-hours trading session.

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