Facebook Beats Sales Estimates in Q1

• Facebook Beats Sales Estimates in Q1

The world’s largest social media Facebook grew its revenue to record high in the first quarter of the year.

The social media grew its revenue by 49 percent to $11.97 billion in the first quarter, beating the 11.4 billion estimated by analysts. The company announced on Wednesday that its daily users now stood at 1.45 billion, matching estimates.

Facebook shares climbed more than 5 percent on Wednesday.

The social media giant has spent the past few months tweaking its privacy following data breach by Cambridge Analytica that led to more than 87 million users’ data been stolen through an app developed by Aleksander Kogan.

“Facebook continues to have a long revenue runway ahead of it,” Mark Mahaney, an analyst at RBC Capital Markets, said in a note to investors. “Marketers continued to spend on the platform at record highs. And we believe actions that lead to revenues speak louder than words.”

Facebook monthly active users in Canada and US rose to 241 million, while daily active users surged to 185 million in the quarter.

The company’s stocks that had dropped by 14 percent due to the data breach report climbed to $168.20.

According to the report, net income rose by 63 percent to $4.99 billion, or $1.69 a share, beating the $1.35 per share predicted by analysts. Capital expenditure rose to $2.81 billion in the quarter as the company increased its spending on security, video content and new technologies. Facebook also announced it boosted its stock-buyback by $9 billion.