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Quarterly report: Facebook achieves strong earnings and sales growth again

Facebook has recovered well in the third quarter. But the operating profit margin has declined.

Facebook headquarters (Image: OSH EDELSON / AFP via Getty Images)

Facebook’s third-quarter revenue grew 22 percent year-over-year to $ 21.2 billion. The company announced this on October 29, 2020 after close of trading on the New York Stock Exchange (PDF) .

Profits grew 29 percent to $ 7.85 billion. The number of daily active Facebook users rose by 30 million to around 1.82 billion. “We had a strong quarter as people and companies continue to rely on our services to stay connected in these difficult times and to generate economic opportunities,” said Facebook CEO Mark Zuckerberg.

But not all indicators point upwards: The Group’s operating profit margin was 37 percent, after 41 percent in the same period of the previous year. The number of employees rose by 32 percent to almost 57,000 last year. The total number of Facebook users increased in all markets with the exception of the USA, where the number of daily active users fell from 256 million in the second quarter to currently 255 million.

The number of monthly users of Facebook products – including Instagram, Messenger and Whatsapp – rose from 2.82 billion in the previous year to 3.21 billion, which corresponds to an increase of 14 percent.

According to the report on the third quarter, Facebook shares rose around 1 percent in after-hours trading. The Facebook share has so far increased by more than 33 percent this year.

The group’s non-promotional sales fell 7 percent year over year to $ 249 million. The category primarily includes Facebook’s Oculus virtual reality business, which, according to CFO David Wehner, is expected to be stronger in the fourth quarter due to sales of the VR headset.

Source: golem.de