Facebook shares jump as revenues beat estimates with near-record ad sales

Facebook has been embroiled in one controversy after another. But ad sales are near records and users keep flocking to the social network.

First-quarter revenue rose 49 per cent to $11.97 billion, beating the $11.4bn average analyst projection, according to data compiled by Bloomberg. In a statement Wednesday, Facebook said it now has 1.45 billion daily users, matching estimates on this key measure of engagement. Shares surged more than 5 per cent in extended trading.

Facebook has spent the past month explaining, apologising and tweaking its rules after an app developer passed along personal information on as many as 87 million users to Cambridge Analytica, a political consulting firm, which may have failed to delete it. That crisis, which resulted in a #deleteFacebook campaign and a congressional inquiry for chief executive Mark Zuckerberg, hit toward the end of the quarter -- so its implications may have had little visible impact so far. Still, the company’s persistent growth points to the strength of its digital-ad business, despite growing concerns from advertisers, users and lawmakers in the past year.

“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.”

The company’s main social network added users in North America, reversing the decline that happened for the first time ever in the fourth quarter. Monthly active users in the US and Canada rose to 241 million, while daily active users climbed to 185 million in the first quarter.

Facebook shares jumped as high as $168.20 after closing unchanged at $159.69 in regular New York trading. The stock has dropped about 14 per cent since the new reports about data-privacy lapses emerged in March.

Net income in the first quarter climbed 63 per cent to $4.99bn, or $1.69 a share, topping the $1.35 per share analysts predicted. Capital expenditures reached $2.81bn in the quarter as Menlo Park, California-based Facebook increases its spending on security, video content and new technologies. The company also said it boosted its stock-buyback program by $9bn.

Facebook still holds a dominant position in mobile advertising, alongside Alphabet’s Google. That has let the company increase the price of ads -- Facebook said mobile made up 91 per cent of ad revenue in the recent period, compared with about 85 per cent a year earlier. The company also has plenty of properties where it’s starting to make more money beyond the main social network, like the popular chat apps WhatsApp and Messenger and the photo-sharing app Instagram, which is expected to reach a billion users this year.

Still, the company has been rocked internally by the data crisis, which has caused Facebook to launch a review of all of its products and evaluate how much information it should share with app developers, researchers and advertisers. Meanwhile, it’s working to address new privacy regulation from Europe, which Facebook has said could reduce the amount of daily users from that region.

The company may no longer be able to build products quickly and roll them out without concern for their potential negative impact.

Mr Zuckerberg has said that the company failed to take a broad enough view of its responsibility to users. Facebook will be staffing up this year to review potentially damaging content more quickly and better understand possible security threats. And it’s put a hold on launching some products, including a home speaker device, while it does a deeper security review.

Facebook in January announced that it was tweaking its news feed algorithm to put an emphasis on posts from friends and family, at the expense of viral news and video. That could reduce the amount of time people spend on the site, the company has said.

Key facilities

Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
Premier League-standard football pitch
400m Olympic running track
NBA-spec basketball court with auditorium
600-seat auditorium
Spaces for historical and cultural exploration
An elevated football field that doubles as a helipad
Specialist robotics and science laboratories
AR and VR-enabled learning centres
Disruption Lab and Research Centre for developing entrepreneurial skills

Paatal Lok season two

Directors: Avinash Arun, Prosit Roy

Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong

Rating: 4.5/5

The specs

AT4 Ultimate, as tested

Engine: 6.2-litre V8

Power: 420hp

Torque: 623Nm

Transmission: 10-speed automatic

Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)

On sale: Now

Sleep Well Beast
The National
4AD

The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

Virtuzone GCC Sixes

Date and venue Friday and Saturday, ICC Academy, Dubai Sports City

Time Matches start at 9am

Groups

A Blighty Ducks, Darjeeling Colts, Darjeeling Social, Dubai Wombats; B Darjeeling Veterans, Kuwait Casuals, Loose Cannons, Savannah Lions; C Awali Taverners, Darjeeling, Dromedary, Darjeeling Good Eggs

Europe’s rearming plan

Suspend strict budget rules to allow member countries to step up defence spending
Create new "instrument" providing €150 billion of loans to member countries for defence investment
Use the existing EU budget to direct more funds towards defence-related investment
Engage the bloc's European Investment Bank to drop limits on lending to defence firms
Create a savings and investments union to help companies access capital

No more lice

Defining head lice

Pediculus humanus capitis are tiny wingless insects that feed on blood from the human scalp. The adult head louse is up to 3mm long, has six legs, and is tan to greyish-white in colour. The female lives up to four weeks and, once mature, can lay up to 10 eggs per day. These tiny nits firmly attach to the base of the hair shaft, get incubated by body heat and hatch in eight days or so.

Identifying lice

Lice can be identified by itching or a tickling sensation of something moving within the hair. One can confirm that a person has lice by looking closely through the hair and scalp for nits, nymphs or lice. Head lice are most frequently located behind the ears and near the neckline.

Treating lice at home

Head lice must be treated as soon as they are spotted. Start by checking everyone in the family for them, then follow these steps. Remove and wash all clothing and bedding with hot water. Apply medicine according to the label instructions. If some live lice are still found eight to 12 hours after treatment, but are moving more slowly than before, do not re-treat. Comb dead and remaining live lice out of the hair using a fine-toothed comb.
After the initial treatment, check for, comb and remove nits and lice from hair every two to three days. Soak combs and brushes in hot water for 10 minutes.Vacuum the floor and furniture, particularly where the infested person sat or lay.

Courtesy Dr Vishal Rajmal Mehta, specialist paediatrics, RAK Hospital

While you're here

Mugabe and Lee Kuan Yew: their different legacies

Marcos’s journey from dictator to hero is complete

In politics, genuine ‘saints’ are few and far between

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young