Facebook’s stock is trading higher after the social media giant reported stronger-than-expected results for the first quarter thanks to soaring ad revenue.
The company said Wednesday it earned $9.5 billion, or $3.30 per share, in the January-March period. That’s up 94% from $4.9 billion, or $1.71 per share, a year earlier.
Revenue grew 48% to $26.17 billion from $17.44 billion.
Analysts, on average, were expecting earnings of $2.35 per share and revenue of $23.73 billion, according to a poll by FactSet.
Facebook had 2.85 billion monthly users, on average, in March. That’s up 10% from a year earlier. Its family of apps — Facebook, Instagram and WhatsApp — had monthly users of 3.45 billion in March. That’s the number of people who logged in to at least one of the apps during the month.
In January, the company predicted uncertainty for 2021, saying its revenue in the latter half of the year could face significant pressure. Because revenue grew so quickly in the second half of 2020, Facebook could have trouble keeping up that pace. This uncertainty is now baked into the company’s forecast, so it didn’t come as a surprise to investors.
Shares of the Menlo Park, California-based company rose $15.62, or 5.1%, to $322.72 in after-hours trading.