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On 4/29/20, Facebook reported 2020 Q1 earnings after the bell, and reactions were positive. In all, Facebook slightly lagged analyst consensus on earnings, but beat on revenues surprising with stronger than expected ad revenue.

By the Numbers:

Earnings per share (EPS): $1.71 reported, lagging analyst consensus of $1.73. Earnings up 101.2% year over year.
Revenue: $17.74 Billion, beating analyst consensus of $17.29 Billion. Revenue up 17.6% year over year.
Monthly Active Users (MAU): 2.60 Billion, up from 2.38 Billion. MAU up 10% year over year.
Daily Active Users (DAU): 1.73 Billion, up from 1.56 Billion. DAU up 11% year over year.

To put it into perspective, the earnings and revenue numbers look good considering analysts were expecting weakness from COVID-19 related dips in advertising. Both the monthly and daily user metrics are up 9-11% year over year. Facebook's operating margin rose to 33% up from 22% a year ago, benefitting from improvements in operations. Across individual geographic segments, both revenue and advertising revenue were up across the board.

User Metrics:

Both monthly and daily active users breakouts show US & Canada numbers were up more than what we have seen in past quarters. European user numbers were up considerably compared to quarters from previous years. Users in the Asia-Pacific and rest of the world accounted for the majority of overall user growth.

Across the full portfolio of Facebook owned applications, there are 2.99 Billion monthly users (up ~100 million users since last quarter). More than a third of the Earth's population use Facebook, WhatsApp, Instagram, or Messenger every month. Approximately, 2.36 Billion people use at least one of Facebook's services each day. Additionally, we learned more than 140 Million small business are now using Facebook's family of services.

Other notable mentions:

Facebook user metrics improvements are partially attributed to the shelter in place orders around the world. Once restrictions are relaxed, Facebook estimates some pull back. Additionally due to COVID-19 there was a marked reduction in advertising over the last three weeks of the quarter. However, ad revenue looks to have stabilized during the first couple weeks of April. On the other hand, Facebook experienced lower expenses for travel, events, marketing, and slowed headcount growth.



Link to Press Release:

https://investor.fb.com/investor-news/press-release-details/...


Replay of the Conference Call:

https://edge.media-server.com/mmc/p/fx4dahch


Link to Conference Call Transcript:

https://s21.q4cdn.com/399680738/files/doc_financials/2020/q1...

Link to Follow Up Conf Call Transcript:

https://s21.q4cdn.com/399680738/files/doc_financials/2020/q1...

Link to 2019 Q4 Conference Call Slide Deck Presentation (PDF):

https://s21.q4cdn.com/399680738/files/doc_financials/2020/q1...



More Foolish Coverage:

Why Facebook Stock Popped Today - https://www.fool.com/investing/2020/04/30/why-facebook-stock...

Stock Market News: Why Tesla and Facebook Are Soaring - https://www.fool.com/investing/2020/04/30/stock-market-news-...

The Most Important Takeaway That Drove Both Facebook and Alphabet Stocks Higher After Earnings - https://www.fool.com/investing/2020/05/01/the-most-important...

Facebook Is Outperforming Google During the Coronavirus Crisis - https://www.fool.com/investing/2020/04/30/facebook-is-outper...

Zoom Video Communications Shouldn’t Lose Much Sleep Over Facebook - https://www.fool.com/investing/2020/04/28/zoom-video-communi...

Facebook’s Libra Gets First Payment Company to Join Since 2019 Exodus - https://www.fool.com/investing/2020/04/28/facebooks-libra-ge...


If you like this type of coverage and would like to see more of it, let me know by hitting the "Recommend It!" button or leave a comment. More importantly, feel free to chime in with your thoughts and expectations for FY20.


CMFHeavyMetal

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Ticker Guide for Costco Wholesale (COST), Facebook (FB), iQiyi (IQ), Magellan Midstream Partners (MMP), Pegasystems (PEGA), Retail Opportunity Investments Corp. (ROIC), & Upwork (UPWK)
Disclosure: May own shares of some, or all of the companies mentioned in this post. (http://tinyurl.com/HM-Disclosure)
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