NEW YORK: Facebook beat analysts' estimates for quarterly revenue on Wednesday (Jan 27), powered by increased ad spending by businesses to capitalise on a holiday shopping season driven online by the pandemic.
The results validate the company's foray into e-commerce with Instagram Shopping and Facebook Marketplace that banked on the trend of social shopping, which picked up pace last year as outdoor recreational activity dwindled due to COVID-19 associated curbs.
The company has launched a slew of new e-commerce products such as Facebook Pay and Facebook Shops that enable in-app purchases across the company's suite of apps, including Instagram and WhatsApp.
Monthly active users rose 12 per cent to 2.80 billion, above the 2.75 billion expected by analysts.
Total revenue, which comprises primarily of advertising revenue, rose to US$28.07 billion in the fourth quarter ended Dec 31 from US$21.08 billion, a year earlier.
Analysts on average estimated quarterly revenue of US$26.44 billion, according to IBES data from Refinitiv.
Net income came in at US$11.22 billion, or US$3.88 per share, compared with US$7.35 billion, or US$2.56 per share, a year earlier.