Facebook (FB) is scheduled to report 1Q21 earnings.

Last quarter, FB's earnings press release hit about five minutes after the closing bell.

For the quarter, analysts are expecting FB to report EPS and revenue of $2.32 and $23.6 bln, equating to yr/yr growth of 36% and 33%, respectively.

Other key metrics to monitor include DAUs and MAUs. Last quarter, DAUs increased by 11% yr/yr to an average of 1.84 bln, while MAUs increased 12% to 2.80 bln as of December 31, 2020.

FB has easily topped EPS and revenue estimates in each of the past three quarters. In fact, its average EPS beat during this stretch is $0.62.

TECHS:

RESULTS:

Facebook beats by $0.98, beats on revs, average price per ad up 30% yr/yr, expects revenue growth rates to "significantly decelerate" in 2H21

Reports Q1 (Mar) earnings of $3.30 per share, $0.98 better than the S&P Capital IQ Consensus of $2.32; revenues rose 47.7% year/year to $26.2 bln vs the $23.61 bln S&P Capital IQ Consensus.

DAUs were 1.88 billion on average for March 2021, an increase of 8% year-over-year.

MAUs were 2.85 billion as of March 31, 2021, an increase of 10% year-over-year.

Commentary on Quarter: "We are pleased with the strength of our advertising revenue growth in the first quarter of 2021, which was driven by a 30% year-over-year increase in the average price per ad and a 12% increase in the number of ads delivered. We expect that advertising revenue growth will continue to be primarily driven by price during the rest of 2021."

• Outlook: "We expect second quarter 2021 year-over-year total revenue growth to remain stable or modestly accelerate relative to the growth rate in the first quarter of 2021 as we lap slower growth related to the pandemic during the second quarter of 2020. In the third and fourth quarters of 2021, we expect year-over-year total revenue growth rates to significantly decelerate sequentially as we lap periods of increasingly strong growth. We continue to expect increased ad targeting headwinds in 2021 from regulatory and platform changes, notably the recently-launched iOS 14.5 update, which we expect to begin having an impact in the second quarter. This is factored into our outlook."

  • Sees FY21 total expenses of $70-$73 bln, updated from prior outlook of $68-73 billion.

  • Sees FY21 capital expenditures of $19-$21 bln, down from prior guidance of $21-$23 bln.
    

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