Facebook Inc (NASDAQ:FB) shares popped in pre-market trade on Wednesday after the social media giant brushed off the Cambridge Analytica scandal to smash expectations with its first-quarter earnings.
The Silicon Valley firm reported diluted earnings of US$1.69 per share, ahead of consensus estimates of US$1.35 and almost two-thirds better than the US$1.04 it posted in the year-ago period.
READ: Facebook shares dip amid Cambridge Analytica investigation
“Despite facing important challenges, our community and business are off to a strong start in 2018,” said Mark Zuckerberg, Facebook founder and Chief Executive.
“We are taking a broader view of our responsibility and investing to make sure our services are used for good. But we also need to keep building new tools to help people connect, strengthen our communities, and bring the world closer together.”
The stock, which has taken a knock over the past month or so in the wake of data privacy concerns, jumped 4.6% after the bell to US$167.10.
User numbers up
Facebook has repeatedly said that the business hasn’t been affected by the Cambridge Analytica scandal, and that certainly seemed to be the case with user numbers jumping in the opening three months of 2018.
The number of daily active users rose 13% year-over-year to 1.45bn, while monthly active users rose by a similar percentage to 2.2bn.
If users weren’t deterred by data privacy concerns, neither were advertisers. Ad revenue jumped by 50% year-on-year to US$11.8bn (Q1 17: US$7.9bn) and it now accounts for 91% of total sales.
US$9bn share buyback announced
To deal with the rapid growth, Facebook has been hiring more and more people. Its headcount stood at just under 28,000 at the end of March – 48% higher than this time last year.
There was also some more good news for investors, with Facebook confirming plans to increase its share buyback scheme up to US$9bn. The board had previously agreed to repurchase up to US$6bn worth of shares.
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