Facebook (FB) Q4 2020 revenue
Facebook shares rose after hours on Wednesday after the company reported its fourth quarter results. The company warned of future changes. Apple iOS 14 reversal and pandemic trends could hurt advertising business.
The numbers are:
- Returned: $ 3.88 per share against Refinitiv plans $ 3.22 per share
- Returned: $ 28.70 billion vs. Refinitiv plans $ 26.44 billion
- User active 1 day (DAU): 1.84 billion pairs FactSet forecasts 1.83 billion
- Monthly active user (MAU): 2.8 billion pairs FactSet forecasts 2.76 billion
- Average revenue per user (ARPU): FactSet predicts $ 10.14 vs. $ 9.49
Facebook CEO Mark Zuckerberg said the company is currently considering reducing the amount of political content that users see in their news feeds. The announcement came in response to the January 6 riots on the U.S. Capitol.
“One of the biggest feedback we’re getting from our community right now is that people don’t want politics or struggle to take back their experience with our services,” Zuckerberg said. I go.
Additionally, Zuckerberg announced that Facebook will definitely stop recommending citizenship and political organizations to users around the world. This came after the company decided in October to temporarily suspend the recommendation of these groups to US users for the 2020 US presidential election.
“It’s a continuation of the work we’ve been doing for some time to calm and discourage confrontational conversations,” Zuckerberg said.
The company said the shift to online commerce and products benefited in 2020 during the pandemic. Facebook said these trends could slow or reverse and “face increased ad revenue. It might be. “
The company also said that Apple’s privacy changes in iOS 14 could affect Facebook’s ability to target ads and could impact its business in the second half of the first quarter. I warned you.
Zuckerberg said Facebook increasingly sees Apple as one of its biggest competitors.
“Apple can say it’s doing this to help people, but this move clearly follows their competitive interests,” Zuckerberg said. “It’s important that people understand this dynamic, because we and others will be dealing with it in the near future.”
In the United States and Canada, Facebook’s user base grew from 196 million a quarter ago to 195 million. This is the second consecutive quarter that the company has lost users in the United States and Canada.
The user base in Europe grew to 308 million daily active users, with 305 million, the first growth in the region for the first time in three quarters.
Facebook said it has 3.3 billion monthly users in its app family, up from 3.21 billion in the previous quarter. This metric is used to measure the total user base for the main applications of Facebook, Instagram, Messenger and WhatsApp.
Facebook’s “Other” revenue reached $ 858 million in the quarter, up 156% year-over-year. This represented more than 3% of Facebook’s revenue this quarter. This includes the sale of Oculus virtual reality headsets and portal video chat devices. During the pandemic, sales increased as people were stuck in their homes looking for entertainment and ways to stay in touch with loved ones.
Facebook CFO David Wehner said the increase in “other” income was due to the strong vacation sale of the Oculus Quest 2 virtual reality headset.
The company announced a buyback of up to $ 25 billion of Facebook shares.
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