Facebook (FB) 2021 Q1 Earnings

The story behind the creation of Facebook Inc (NASDAQ:FB) started in 2004 when dedicated computer programmer Mark Zuckerberg launched social media website “The Facebook” to connect Harvard students. Around 1,200 Harvard students signed up on the platform just a day after its launch.

The website rapidly gained popularity in universities across the U.S., before spreading worldwide. Today, Facebook is the largest social media network in the world with nearly 2.85 billion monthly active users. The company also owns leading social media apps including Instagram and WhatsApp.

The California-based company recently announced better-than-expected financial results for the first quarter. Facebook reported earnings of $3.30 per share for the three months ended March 31, well above $1.71 per share in the comparable period of 2020. Analysts on average were expecting Facebook to report earnings of $2.37 per share.

Revenue for the quarter climbed 48 percent on a year-over-year basis to $26.2 billion, easily beating the consensus forecast of $23.73 billion. Total sales were mainly driven by a 30 percent hike in the average price per advertisement.

The company’s monthly active people (MAP) increased to 3.45 billion in the quarter, as compared to 3.30 billion in the prior quarter. MAP is a key indicator that calculates total users across all its apps including Facebook, Messenger, Instagram, and WhatsApp.

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Speaking on the results, CEO Mark Zuckerberg said in a statement, “We had a strong quarter as we helped people stay connected and businesses grow. We will continue to invest aggressively to deliver new and meaningful experiences for years to come, including in newer areas like augmented and virtual reality, commerce, and the creator economy.”

Facebook is the #1 stock among hedge funds.

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