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?
- How Much Revenue Can WhatsApp Generate In The Next Five Years?
- What If Average Ad Pricing Continues To Increase Rapidly On Facebook?
- The Three Key Drivers To Facebook’s Growth
- Core Platform vs Payment & Fees: What’s Facebook’s Revenue and EBITDA Margin?
- Up 7% This Year, Will Halliburton’s Gains Continue Following Q1 Results?
- Here’s What To Anticipate From UPS’ Q1
- Should You Pick Abbott Stock At $105 After An Upbeat Q1?
- Gap Stock Almost Flat This Year, What’s Next?
- With Smartphone Market Recovering, What To Expect From Qualcomm’s Q2 Results?
- Will United Airlines Stock Continue To See Higher Levels After A 20% Rise Post Upbeat Q1?
Notes:
See More at Trefis | View Interactive Institutional Research (Powered by Trefis)