Facebook 2019 profits $18.485 bn, 16 pct. below 2018
Visitors walk past a Facebook sign at the China International Import Expo (CIIE) in Shanghai, China, on 07 November 2018 (reissued 29 January 2020). EFE/EPA/STRINGER CHINA OUT *** Local Caption *** 55144944
San Francisco, Jan 29 (efe-epa).- Facebook on Wednesday announced profits of $18.485 billion for its 2019 fiscal year, a 16 percent decline from the year before, a reflection of the heavy fines levied on the firm by regulators.
The world's most-used social network - with 1.66 billion daily active users - brought in revenues of $69.655 billion between January and December 2019, 27 percent more than the $55.013 billion it pulled in during 2018.
However, despite the significant revenue hike, the fines and an increase in other expenses weighed on the bottom line.
Although Facebook shares were up 2.5 percent during the regular trading session on Wednesday on the New York Stock Exchange, closing at a record high of $223.23 per share, the stock plummeted more than 7 percent in after-hours trading following the earnings announcement.
The firm - based in Menlo Park, California - increased the number of its worldwide daily active users by 9 percent during 2019 to 1.66 billion, while monthly active users increased to 2.5 billion.
Facebook shares earned $6.43 per share during 2019, well below the $7.57 per share the firm earned in 2018.
The firm headed by Mark Zuckerberg reported operating expenses, before interest and taxes, for 2019 of $23.986 billion.
Regarding quarterly results, Facebook earned $7.349 billion between October and December, 7 percent more than the $6.882 billion it earned during the same quarter in 2018.
Facebook's 4Q earnings came in at $21.082 billion, 25 percent more than during the same quarter a year ago, or $2.56 per share, outpacing the $2.38 per share the firm earned during 4Q 2018.
"We had a good quarter and a strong end to the year as our community and business continue to grow," said Zuckerberg in a statement. "We remain focused on building services that help people stay connected to those they care about."