Facebook experiences year-over-year user growth in Q1 2020 despite COVID-19

Facebook earned a total revenue of $17.737 billion USD in Q1 of 2020

While COVID-19 has negatively affected the lives of many people around the world, the pandemic seems to have helped increase Facebook’s user base in Q1 2020, especially in March.

In Facebook’s  Q1 earnings report, the company saw growth of 1.73 billion daily active users (DAU). This is a jump from the 1.66 billion the company reported in its previous quarter. If you add all of the company’s family of apps, including Facebook, Instagram, Messenger and WhatsApp, their DAUs climbed to 2.36 billion. The apps also saw a monthly active user climb of 3 billion, which is an 11 percent increase year-over-year.

Though the company is doing well, it has also experienced a reduction in demand for advertising.

“We experienced a significant reduction in the demand for advertising, as well as a related decline in the pricing of our ads, over the last three weeks of the first quarter of 2020,” said the company’s earnings report.

Facebook does note that COVID-19 has impacted the company and that it’s facing a period of uncertainty.

“We expect our business performance will be impacted by issues beyond our control, including the duration and efficacy of shelter-in-place orders, the effectiveness of economic stimuli around the world, and the fluctuations of currencies relative to the U.S. dollar,” said Facebook in its earnings report.

However, even with a decrease in advertising this past quarter, Facebook notes a revenue increase of 18 percent year-over-year. From January to March 31st, Facebook earned a total revenue of $17.737 billion (roughly 24 billion CAD), compared to last year’s first quarter of $15,077 billion (roughly $20 billion CAD).

This is a decrease compared to Q4 of 2019 where Facebook reported revenue of $21.08 billion USD (about $27.83 billion CAD).

Source: Facebook Via: Engadget