Thursday 30 July 2020 9:14 pm

Facebook smashes revenue expectations as more people login in lockdown

Social media behemoth Facebook has smashed analyst expectations in the second quarter, beating predictions for advertising revenue, earnings per share and user numbers.

Shares in the social network shot up 7.8 per cent in after hours trading.

In total, revenue rose from $16.9bn last year to $18.7bn in the past three months, ahead of analyst forecasts of $17.4bn.

The firm said that it expected ad revenue growth in the third quarter to be in line with this performance, based on July’s performance.

Monthly active users grew to 2.7bn in the quarter, ahead of estimates of 2.6bn, and a 12 per cent increase year-on-year.

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Facebook said that the increase in users was due to the coronavirus lockdowns, which saw people use more of their products to keep connected to people and organisations while remaining at home.

“We’re glad to be able to provide small businesses the tools they need to grow and be successful online during these challenging times,” said founder and chief executive Mark Zuckerberg.

“And we’re proud that people can rely on our services to stay connected when they can’t always be together in person.”

Earnings per share rose to $1.80, beating forecasts of $1.40.

Facebook’s results came a day after Zuckerberg appeared before Congress alongside the bosses of fellow tech titans Google, Amazon and Apple to face a grilling over their domination of the market.

More to follow.