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Summary
- Facebook’s revenues surged by 48% on back of healthy growth in advertisements.
- The company added 56 million monthly users in the quarter.
- The shares of company rallied 6% after the announcement.
Social media behemoth Facebook Inc (NASDAQ:FB) saw a robust topline growth in Q3, owing to massive surge in the advertising revenues.
The world’s largest social media company saw its revenues surging by 48% to US$26.17 billion in the quarter ended March 2021, from US$17.74 billion a year ago, shattering the estimates of Wall Street.
The surge in the revenues was propelled by a huge increase in the mop-up from the advertisements across the social media platforms owned by Facebook. The advertisement revenue of the company surged by 46% to US$25.44 billion in the quarter, from US$17.44 billion in the corresponding quarter last year.
The surge in the advertisement revenues comes despite the raging controversy on privacy concerns surrounding the personalised ads. “It’s also on us to keep making the case that personalised advertising is good for people and businesses, and to better explain how it works so that people realize that personalised ads are privacy-protective,” Sheryl Sandberg, company’s Chief Operating Officer said.
Owing to the increase in the topline, the company saw its bottomline almost double in the quarter. The company reported net profit of US$9.5 billion in the March quarter, up 94% compared with US$4.9 billion in the corresponding quarter last year.
The number of monthly active users of Facebook during the quarter soared by 56 million, with a record 2.85 billion people joining the social network in the last month of the quarter.
“More than 2.7 billion people now use one or more of our apps each day, and more than 200 million businesses use our tools to reach customers. This has been an intense year, and I am proud that we continue to deliver value for people and businesses around the world,” Facebook CEO Mark Zuckerberg said.
According to company’s CFO Dave Wehner, approximately 3.4 billion people used at least one of the Facebook’s services, a monthly basis.
Outperforming the expectations, the company’s shares surged by 6% in the aftermarket hours, and were trading at US$326 per scrip in New York.
Earlier in the day, Apple Inc also recorded 54% growth in the March quarter revenues.
