Facebook beat analysts estimates for quarterly revenue Wednesday and stated it has seen “signs of stability” for sales in April after a plunge in March, in yet another sign that tech giants may weather the coronavirus-induced economic fall better than other sectors.
The declaration came a day after Alphabet’s Google said a slump in its online advert sales equally steadied in April. Shares of Facebook, the world’s largest social network and the owner of WhatsApp and Instagram, soared 9% in extended trading.
Facebook mentioned advertising revenue was roughly flat in the first three weeks of April in contrast with the same interval in 2019, a tentative early sign of a recovery following a “steep decrease” in income in March as lockdowns took effect worldwide to slow the spread of the virus.
Revenue growth was 18% in Q1, Facebook’s slowest ever by a wide margin, although it beat analysts’ expectations for growth of 16%, in accordance with IBES data from Refinitiv. Advert sales, which make up practically all of Facebook’s income, jumped 17% to $17.44 billion.
Several businesses took advantage of bargain pricing to run a heavier volume of advertisements after the pandemic wiped out Facebook advert pricing over the course of the quarter, contributing to a 39% increase in total advert impressions, executives stated.
Chief Operating Officer (COO) Sheryl Sandberg told analysts the company saw a rise in gaming advertisements and regular spending from technology and e-commerce players, which offset vital declines in ads from the hard-hit travel and auto industries.