Facebook’s Stock Soars On Robust Earnings And User Growth In 2016
Facebook (NASDAQ:FB) significantly outperformed expectations in the first quarter of 2016, both in terms of financial and engagement metrics. The company registered 52% growth in revenue over the prior year quarter to about $5.4 billion, against a Reuters compiled consensus estimate of $5.24 billion. Operating income more than doubled to over $2 billion and the company’s operating margin improved from 26% in Q1 2015 to 37% in Q1 2016. This helped Facebook post extraordinary 189% year-over-year (y-o-y) earnings growth in the quarter to 52 cents a share.
In terms of engagement metrics, there was 5% sequential growth in Facebook’s daily active users (DAUs) to 1.09 billion and 4% sequential growth in its monthly active users (MAUs) to 1.65 billion. Buoyed by the robust results, Facebook’s stock price soared about 9% in after-hours trading Wednesday. 
Have more questions about Facebook? See the links below.
- Growth Markets Contribute 66% Of Facebook’s User Base. How Much Do They Contribute To Its Revenue?
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- The Three Key Drivers To Facebook’s Growth
- Core Platform vs Payment & Fees: What’s Facebook’s Revenue and EBITDA Margin?
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