The company’s total revenue for the reported quarter surged by 48% year-over-year

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Facebook posted revenue of $26.17bn in Q1 2021. (Credit: Firmbee from Pixabay)

Facebook has posted a 94% increase in its net income for the first quarter of 2021 at $9.49bn compared to a net income of $4.9bn in the same quarter of the previous year.

The diluted earnings per share of the social media company for the reported quarter that ended 31 March 2021 were $3.3, a 93% increase compared to $1.71 in Q1 2020.

For the previous quarter, that is Q4 2020, Facebook’s net income was $11.2bn.

The company’s total revenue for Q1 2021 saw a 48% growth from $17.73bn in Q1 2020 to $26.17bn. A bulk of that came from advertising, which earned $25.43bn in the reported quarter, a 46% growth year-over-year (YoY).

In Q4 2020, Facebook’s total revenue was $28.07bn.

The company expects to see a capital expenditure of $19-21bn for this year, which will be mainly used for investments in data centres, network infrastructure, servers, and office facilities.

Facebook said that its daily active users (DAUs) for Q1 2021 were 1.88 billion on average, which is an increase of 8% YoY. Its monthly active users (MAUs) increased by 10% YoY to 2.85 billion.

The daily active people (DAP) for Q1 2021 grew by 15% YoY to 2.72 billion, while the monthly active people (MAP) increased by the same percentage YoY to 3.45 billion.

The company’s headcount increased by 26% YoY for Q1 2021 to 60,654.

Facebook founder and CEO Mark Zuckerberg said: “We are pleased with the strength of our advertising revenue growth in the first quarter of 2021, which was driven by a 30% year-over-year increase in the average price per ad and a 12% increase in the number of ads delivered. We expect that advertising revenue growth will continue to be primarily driven by price during the rest of 2021.

“We expect second quarter 2021 year-over-year total revenue growth to remain stable or modestly accelerate relative to the growth rate in the first quarter of 2021 as we lap slower growth related to the pandemic during the second quarter of 2020.”