Facebook Inc (FB.O) beat analysts’ estimates for quarterly revenue on Wednesday and said it has seen “signs of stability” for sales in April after a plunge in March, in yet another signal that tech giants may weather the coronavirus-induced economic collapse better than other sectors, APA reports citing Reuters.
The announcement came a day after Alphabet’s (GOOGL.O) Google said a drop in its online ad sales similarly steadied in April. Shares of Facebook, the world’s biggest social network and the owner of WhatsApp and Instagram, soared 9% in extended trading.
Facebook said advertising revenue was roughly flat in the first three weeks of April compared with the same period last year, a tentative early sign of recovery following a “steep decrease” in revenue in March as lockdowns took effect worldwide to slow the spread of the virus.
Revenue growth was 18% in the first quarter, Facebook’s slowest ever by a wide margin, although it beat analysts’ expectations for growth of 16%, according to IBES data from Refinitiv. Ad sales, which make up nearly all of Facebook’s revenue, rose 17% to $17.44 billion.
Some businesses took advantage of bargain pricing to run a heavier volume of ads after the pandemic wiped out Facebook ad pricing over the course of the quarter, contributing to a 39% increase in total ad impressions, executives said.
Chief Operating Officer Sheryl Sandberg told analysts the company saw an increase in gaming ads and steady spending from technology and e-commerce players, which offset “significant declines” in ads from the hard-hit travel and auto sectors.