Facebook is about to report its Q1 earnings

Guillermo Lane
May 4, 2017

Analysts polled by Thomson Reuters had forecast an 87-cent profit on revenue of $7.84 billion.

The social media giant is expected to generate $31.94-billion in mobile ad revenue globally in 2017, a 42.1 per cent jump from a year earlier, according to research firm eMarketer.

Revenues for the quarter surged 49 percent to $8.03 billion from $5.38 billion previous year.

Earlier this year, when Facebook announced its earnings for the fourth quarter and full year 2016, it showed a steady growth in its revenue and user base. But some were already confident Facebook remains on the growth track, partly thanks to rapidly increasing ad revenues at its Instagram photo and video sharing app.

Daily active users rose 18 percent to 1.28 billion on average for March, while monthly active users increased 17 percent to 1.94 billion.

"We had a good start to 2017", CEO Mark Zuckerberg says. It wasn't immediately clear why, though there may be some confusion over the numbers because Facebook no longer is providing the metric analysts like that removes certain costs such as stock compensation.

In an interview with Business Insider on Wednesday, Facebook CFO Dave Wehner reiterated his previous comments that revenue growth from the News Feed will slow going into the second quarter. "We're continuing to build tools to support a strong global community".

Shares of Facebook were down roughly 2% in after hours trading, despite the solid results. It earned that from 1.94 billion users, up from 1.86 billion last quarter, up a faster 4.3 percent compared to 3.91 perecent last quarter.

Earlier in the day, the company said it would add 3,000 people over the next year to monitor reports of inappropriate material on its network and removing videos such as murders and suicides.

Other reports by TheDigitalNewspaper

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