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Facebook generates $28 billion in quarterly revenue

 


Facebook's revenue, which consists almost entirely of ad sales, rose 33 percent to $28.07 billion in the fourth quarter ended December 31 from $21.08 billion a year earlier.

Facebook ended 2020 much stronger financially than at the beginning of the year, proving that its business can overcome the coronavirus pandemic and even thrive thanks to the escalating usage time over the past 12 months.

Net income was $11.22 billion, up 53 percent year-on-year.

In terms of usage, Facebook is everywhere, with more than 1.84 billion people using its main social network at least once a day in December 2020, an 11 percent year-on-year increase.

As of December 31, 2020, more than 2.8 billion people visited Facebook at least once a month, a 12 percent increase over the previous year.

When measuring the use of the combined set of applications that also include Facebook Messenger, Instagram, and WhatsApp, a measure that the company refers to as active people in the family, the numbers are better, as usual.

More than 2.6 billion people visit a Facebook app every day, up 15 percent from 2019, while more than 3.3 billion people visit an app at least once a month, an increase of 14 percent.

Facebook's actions were largely unaffected by its decision in October to temporarily ban political advertising after the US election.

The company extended the one-month ban in December but excluded ads for Georgia's Senate races.

This was expected, as political advertising pales in comparison to e-commerce, retail, and small business advertising spending across the platform.

Video chat devices Portal and virtual reality business Oculus performed well in the fourth quarter, with revenue jumping 156 percent to $885 million.

Facebook has warned that Apple's impending privacy changes could hurt profits by interfering with ad targeting.

The world's largest social media company said it expects to face counter-winds to target ads in 2021.

Facebook predicted that Apple's update of its iPhone operating system to iOS 14 could begin to bite revenue as early as the end of the first quarter.

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