META Meta Platforms Inc

By WSJ City 

Facebook set aside $3bn for an expected fine from the Federal Trade Commission over privacy issues, cutting into the social-media giant's profits even as its underlying business remained strong.

KEY NUMBERS

--- Facebook posted $15.08bn in revenue, up 26% from $11.97bn in the same period last year.

--- Profits came in at just $2.43bn in the first quarter, as the one-time reserve wiped out most of its income.

--- Earnings-per-share missed expectations, coming in at $0.85 against an expected $1.69.

--- If not for the one-time cost, they'd have beaten comfortably, at $1.89.

--- Excluding the reserve for the FTC settlement, Facebook's operating margin fell to 42%.

--- Costs rose from $6.52bn to $8.76bn.

Why This Matters

Facebook has been warning that its margins will decline as a result of its increased investment in moderating user-generated content.

Following the company's first-quarter earnings report, Facebook stock rose about 4% in after-hours trading. Before the close of trading on Wednesday, the company's stock had risen roughly 35% year to date.

A fuller story is available on WSJ.com

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(END) Dow Jones Newswires

April 25, 2019 08:59 ET (12:59 GMT)

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