Facebook reported Q3 2020 revenues of $ 21.2 billion, up from $17.4 billion in Q3 2019, according to the company’s press release. The quarter’s net earnings were $7.8 billion or $2.71 diluted earnings per share, up from $6.1 billion or $2.12 EPS in Q3 2019. Quarterly earnings increased due to a rise in demand for services as people relied on Facebook to stay connected during the pandemic.
- Facebook expects Q4 year-over-year ad revenue growth rate to be higher than the reported Q3 rate driven by strong advertiser demand during the holiday season.
- The company expects headwinds from platform changes, notable on Apple iOS 14.
- Facebook faces uncertainty around the viability of transatlantic data transfers given the recent European regulatory development and is closely monitoring the developments.
- Facebook expects total expenses in 2020 to range from $53-54 billion from a prior range of $52-55 billion.
- The company expects FY20 total expenses to range $68-73 billion driven by continued product developments, investments in technical talent, and return of more normal levels of spending such as office operations and travel.
- Capital expenditures for FY20 remain unchanged from the prior outlook of $16 billion.
Facebook stock is declining. FB: NASDAQ is down on premarket 0.43%