Shares of Facebook parent Meta jumped in extended trading on Wednesday after the company reported earnings that topped estimates even as revenue disappointed.
Here are the results.
- Earnings per share: $2.72 vs $2.56 expected, according to a Refinitiv survey of analysts
- Revenue: $27.91 billion vs $28.2 billion expected, according to Refinitiv
Wall Street is also watching other key numbers in the Meta report:
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Daily Active Users (DAUs): 1.96 billion vs 1.95 billion expected, according to StreetAccount
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Monthly Active Users (MAUs): 2.94 billion vs 2.97 billion expected, according to StreetAccount
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Average Revenue per User (ARPU): $9.50 expected, according to StreetAccount
The stock was up 13% after hours.
Meta reported daily active users (DAUs) on Facebook that beat analyst estimates after reporting its first ever decline in users on record last quarter.
Additional Notes from SA:
Revenues rose 7% to $27.9 billion, while analysts (even after a number of downward revisions) had forecast 7.8% growth to $28.2 billion.
Net income declined just 21% vs. expectations for a 24% drop, though.
In operating metrics, daily active users rose 4% to 1.96 billion, topping expectations there, while monthly active users rose 3% to a generally in-line 2.94 billion.
Family daily active people – the metric that looks across Meta's family of apps, including Instagram and WhatsApp – rose 6% to 2.87 billion on average for March, while family monthly active people also rose 6%, to 3.64 billion.
Earlier, a flash slide in Meta's stock happened when an erroneous headline moved on Bloomberg terminals saying the company had guided Q2 revenues to $27 billion-$29 billion (that actually was its guidance for Q1, issued with fourth-quarter earnings).
It's actually guiding to Q2 revenues of $28 billion-$30 billion, still a bit shy of consensus for $30.69 billion. That's due to a “continuation of the trends impacting revenue growth in the first quarter, including softness in the back half of the first quarter that coincided with the war in Ukraine,” as well as expectations that currency changes would provide a 3% headwind.
The company sees 2022 total expenses in the range of $87 billion-$92 billion, down from a prior outlook for $90 billion-$95 billion, with expenses driven mainly by Family of Apps rather than Reality Labs. And 2022 capital expenditures are forecast for $29 billion-$34 billion (unchanged).
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