Investing.com - Facebook (NASDAQ:FB) reported better-than-expected earnings and revenue in the fourth quarter, led by an uptick in user growth.
Facebook (NASDAQ:FB) announced earnings per share of $2.56 on revenue of $21.08B. Analysts polled by Investing.com anticipated EPS of $2.52 on revenue of $20.88B. That with comparison to EPS of $2.38 on revenue of $16.91B in the same period a year before. Facebook had reported EPS of $2.12 on revenue of $17.65B in the previous quarter.
Profit was held back, however, by a 34% surge in costs and expenses partly offsetting better-than-expected revenue per user.
Average revenue per user (ARPU) was $8.52 for the quarter, above estimates for $8.38.
Daily active users (MAUs), one of the key metrics that analysts use to gauge the health of the company, increased 9% from the year-ago period to 1.66 billion, slightly above estimates 1.65 billion. Monthly active users rose 8% to 2.5 billion, in-line with estimates.
Family daily active people (DAP) rose 11% to 2.26 billion year-on-year on average for December 2019, and family monthly active rose 2.89 billion 9% year-on-year.
“We had a good quarter and a strong end to the year as our community and business continue to grow,” Facebook CEO Mark Zuckerberg said in a statement. “We remain focused on building services that help people stay connected to those they care about.”
The company also announced the launch of a $10 billion stock buyback program.
Facebook shares are up 8% from the beginning of the year and are trading at $207.56 , still down 0.41% from its 52 week high of $224.20 set on January 29. They are outperforming the Nasdaq which is up 2.61% year to date.
Facebook shares lost 7.04% in after-hours trade after the report.
Facebook follows other major Technology sector earnings this month
Facebook's report follows an earnings beat by Apple on Tuesday, who reported EPS of $4.99 on revenue of $91.82B, compared to forecasts EPS of $4.54 on revenue of $88.38B.
IBM had beat expectations on January 21 with fourth quarter EPS of $4.71 on revenue of $21.78B, compared to forecast for EPS of $4.69 on revenue of $21.64B.
Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com's earnings calendar