Facebook’s Revenue Train Keeps Chugging Along . . . For Now
Late Wednesday Facebook announced its Q1 Earnings performance, and the results were nothing short of stellar. Compared to Q1’17 Facebook’s top line revenue increased by 50% to $12B and it’s quarterly earnings rocketed to $5B. As a quick aside remember when Mark Zuckerberg was lambasted for turning down Yahoo’s $1B offer to buy Facebook in 2006? Now a dozen years later their profit is 5x that amount in just one quarter! Worldwide MAUs (monthly active users) also increased by 70M since Q4’17 to 2.2B. So I guess some humans on planet Earth are still just finding the social platform for the first time.
Now that we’ve got the glory stats out of the way let’s talk about the gorilla in the room. Since the Cambridge Analytica data breach story didn’t break until March 15-20th there wasn’t enough time to see an advertiser reaction in Q1. That means all eyes will be on Facebook’s ad revenue and user growth metrics 90 days from now when they release their Q2 Earnings. Should be interesting to watch.