A Recap Of Social Media Earnings

Social media use is booming due to government-imposed quarantines, and we finally know just how much more the world's largest social platforms are being used.

TikTok, the social video company owned by Chinese company ByteDance, might be the biggest gainer of the outbreak as it has now surpassed 2 billion downloads. In the first quarter of 2020, TikTok generated the most downloads for any app ever in a quarter as it accumulated more than 315 million installs through Apple Inc's AAPL App Store and Alphabet Inc's GOOG GOOGL Google Play. 

Facebook

Last week, Facebook Inc FB announced its revenue came in at $17.74 billion, up nearly 18% from the $15.08 billion the company reported in the first quarter of 2019. It gathered 2.99 billion monthly users across its family of apps: Instagram, WhatsApp, Messenger which is more than 2.89 billion it had in the previous quarter. Earnings per share were slightly less than Refinitiv's $1.75 estimate, as they amounted to $1.71. Revenue came to $17.74 billion which is greater than $17.41 billion in revenue for the first quarter. Daily active users (DAUs) came in at 1.73 billion with as many as 2.6 billion monthly active users (MAUs).

After a harsh hit in March, Facebook is now seeing signs of stabilization when it comes to advertising revenue. Early data for April certainly looks more promising, and this echoes what Google saw with its own advertising business. With cash and cash equivalents at $60.29 billion and its traditionally high margins, Facebook has a financial position that allows the company to continue building its product portfolio and making bets, such as last month's $5.7 billion investment in India's Jio Platforms. 

Twitter

Twitter Inc TWTR monetizable daily active users (mDAU growth) exploded from 152 million in the last quarter to 166 million thanks to global conversation that the outbreak triggered. The company reported first-quarter earnings were in-line with Wall Street estimates with a revenue beat despite the COVID-19 taking a toll on advertising overall.

Twitter's Q1 2020 diluted earnings per share were -$0.01 on revenue of $808 million, which is down from $1.01 billion last quarter but up 3% on a year-over-year basis. Like Facebook, Twitter is seeing rapid user growth, but with challenges to monetize it as advertisers are slashing on spending. With an increase to 14 million, the all-important mDAU metric grew 24% year-over-year. However, operating income for the quarter ended up being a loss of $7 million. 

Snap And Pinterest

Snap Inc SNAP reported an $0.08 loss per share, which was slightly above last year's reading. Revenue came in at $462 million, which beat Wall Street's estimate and grew significantly on a year-over-year basis. However, results, and despite posting a slight miss on earnings and withdrawing full-year guidance, shares have soared as the company managed to beat top-line revenues.

The company also said that daily active users were up 20% year-over-year to 228 million, and that the total daily time spent watching content on the "Discover" tab increased by over 35%. 

Pinterest PINS reported a loss of $0.10 per share last quarter, missing the $0.08 loss estimate. Top-line revenue was a little better however, with the $271 million figure coming slightly above the consensus estimate. Monthly Active Users increased 26% year-over-year to 367 million.

The company had previously announced that as of March 31 it had roughly $1.7 billion in cash and cash equivalents, zero debt, and an undrawn $500 million revolving credit facility. 

Outlook

It was a mixed back for social media companies in the first quarter. Though usage was up, advertising revenue is down. Nobody offered much in the way of guidance, though Facebook CEO Mark Zuckerberg did say they have seen the digital advertising market rebound in April.

The tone from each of these companies was cautious. With no one sure just how long the COVID-19 crisis will last, these companies are trying to highlight their user growth, and hoping the earnings will come through later.

This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. Ivana Popovic does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: contributors@iamnewswire.com Questions about this release can be sent to ivana@iamnewswire.com

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