Just like Google yesterday, Facebook has managed to beat expectation for Q1 2020.
The company raked in $US17.74 billion for the first quarter of the year, up 18 per cent YoY.
However, Facebook did flag a “significant reduction in the demand for advertising” during the last three weeks of March.
Travel & Auto were the verticals hit hardest by the downturn, while gaming, technology and ecommerce have remained relatively strong.
As a result of the current financial uncertainty, Facebook declined to provide a revenue guidance for the second quarter of 2020, rather it gave a glimpse at the results so far.
“After the initial steep decrease in advertising revenue in March, we have seen signs of stability reflected in the first three weeks of April, where advertising revenue has been approximately flat compared to the same period a year ago, down from the 17 per cent year-over-year growth in the first quarter of 2020,” the company said in a note to investors.
While a financial downturn owing to the COVID-19 pandemic was more or less expected, social isolation has led to a sharp influx in users across the entire Facebook ecosystem (WhatsApp and Instagram).
“For the first time ever, there are now more than 3 billion people actively using Facebook, Instagram, WhatsApp or Messenger each month,” said CEO and founder Mark Zuckerberg.
“That includes 2.6 billion people using Facebook alone, and more than 2.3 billion people using at least one of our services every day.
“In many of the places hardest hit by the virus, messaging volume has increased more than 50 per cent, and voice and video calling have more than doubled across Messenger and WhatsApp.
“In Italy, for example, we’ve seen up to 70 per cent more time spent across our apps, Instagram and Facebook Live views doubled in one week, and we’ve also seen time in group video calling increase by more than 1,000 per cent over March.”