Facebook Inc. (FB) Wednesday reported a fourth-quarter profit that increased from a year ago, driven largely by 33% growth in revenues. The social media giant’s earnings and revenues for the quarter trumped Wall Street estimates, but the company warned of “significant uncertainty” in 2021.
Menlo Park, California-based Facebook’s fourth-quarter profit jumped 53% to $11.22 billion or $3.88 per share from $7.35 billion or $2.56 per share last year. On average, 41 analysts polled by Thomson Reuters estimated earnings of $3.22 per share for the quarter.
Revenues for the quarter rose 33 percent to $28.07 billion from $21.08 billion last year. Analysts had a consensus revenue estimate of $26.43 billion for the quarter.
Daily active users were up 11 percent to 1.84 billion on average for December, while monthly active users increased 12 percent to 2.80 billion. Total advertising revenues rose 31 percent to $27.19 billion.
“We had a strong end to the year as people and businesses continued to use our services during these challenging times,” said Mark Zuckerberg, Facebook founder and CEO. “I’m excited about our product roadmap for 2021 as we build new and meaningful ways to create economic opportunity, build community and help people just have fun.”
Moving ahead, Zuckerberg said that the company continues to “face significant uncertainty” as it manages through a number of cross currents in 2021.
FB closed Wednesday’s trading at $272.14, down $9.91 or 3.51%, on the Nasdaq. The stock, however, gained $0.32 or 0.12%, in the after-hours trading.
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