Facebook Ad Revenue Slows Up
SAN FRANCISCO: Facebook has reported revenue growth of 18 percent in Q1, its slowest ever, as ad sales rose 17 percent to US$17.44 billion in the period. The company warned in March that the coronavirus outbreak was undercutting ad sales.
Total costs and expenses rose just one percent to $11.84 billion in the quarter, boosting operating margins to 33 percent from 22 percent a year earlier.
Facebook said it is lowering its guidance for total expenses in 2020 to $52-56 billion, down from a prior range of $54-59 billion, due to a freeze on hiring, and has cancelled travel, events and marketing.
Almost three billion users interacted with at least one of its apps each month in the quarter, up from 2.89 billion last quarter. Use of social networks surged with people stuck at home during virus-related lockdowns.