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Tuesday, May 18, 2021

Facebook's Earnings Call - Facebook to Have Highly Ambitious Goals on Releasing Ecommerce Features in Near Future

Last updated Wednesday, May 5, 2021 01:07 ET , Source: kissprnews

Facebook is planning big on implementing new e-commerce features and tools on its platforms to open big doors for creators, affiliate marketers, influencers, and brands.

Long Island, NY, United States, 05/05/2021 / SubmitMyPR /

Facebook has posted monster first-quarter results thanks mainly to its advertising revenue stream. Serious investors shouldn't forget its serious venture into e-commerce.

$23.7 Billion Revenue Generated

Facebook reported first-quarter revenue of $26.1 billion. Year over the years, it has grown a colossal 48%. Analysts projected revenue and earnings per share as $23.7 billion and $2.37, respectively. These projections were way off the mark, with net income nearly doubling to $9.5 billion and earnings per share of $3.30.

Evolving plans in e-commerce

These headline-making spectacular numbers are certainly interesting, but there is a lot more going on below the surface that investors should understand regarding Facebook's first-quarter earnings. Two subjects of particular interest that came up during the call were Facebook's evolving plans in e-commerce and the primary catalyst for its massive hike in its advertising revenue.

The management of Facebook expanded on these topics as below:

Facebook Has Massive Schemes for e-commerce

The number one topic of discussion during the earnings call was Facebook's increased investment in e-commerce. Mark Zuckerberg, the CEO of Facebook, confirmed that it is looking at e-commerce as having long-term opportunities, which they are concentrating on. He said that while they have been interested in this line of business for some time, the accelerated interest has been due to the global pandemic. It has resulted in more businesses going online.

Sometime this year, it seems that Facebook may release some new e-commerce features riding on the popularity of the Instagram and Facebook platforms. Zuckerberg said, "We have a unique ability to bring creators and commerce together." More information is expected towards the end of 2021.

Facebook has already made forays into shopping. Over 1 million entrepreneurial users are already selling on Facebook and Instagram. A whopping 250 million monthly shoppers actively buy their products.

A Swell of Requests from Advertisers

There's a 12% increase in ad revenue and a 30% growth in the cost of each ad. It has led to an increase in Facebook's revenue growth. The CFO David Wehner said the driving force had been a sweeping demand from all businesses and increased ad spend. The demand was certainly more than was expected. It indicates the strong recovery of businesses that were badly crushed by the COVID-19 global pandemic.

It would help Facebook shareholders to listen closely to the lessons from the first-quarter earnings call. Besides the two topics above, the management has released more information about Facebook Marketplace, WhatsApp, payments, etc.

REFERENCE:

https://www.fool.com/investing/2021/05/02/2-must-see-takeaways-from-facebooks-earnings-call/

Original Source of the original story >> Facebook's Earnings Call - Facebook to Have Highly Ambitious Goals on Releasing Ecommerce Features in Near Future


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