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Facebook 3Q results handily beat analysts' earnings, revenue estimates

Revenue jumped 29% to $17.65 billion from $13.73 billion a year ago, and advertising sales accounted for 98%

Facebook Inc boss Mark Zuckerberg
In other news, Facebook also agreed to pay a £500,000 fine over Cambridge Analytica row

Facebook Inc (NASDAQ:FB) on Wednesday reported third-quarter results that handily beat analysts' earnings estimates and topped revenue forecasts.

The Menlo Park, Calif.-based company said income was $6.09 billion, or $2.12 a share, compared with $5.14 billion, or $1.76 a share, in the year-ago period.

Revenue jumped 29% to $17.65 billion from $13.73 billion a year ago. Analysts had estimated $1.91 a share on revenue of $17.4 billion.

Advertising sales accounted for 98% of total revenue, or $17.38 billion.

READ: Facebook’s Libra creates “challenges” for finance sector, regulator warns

Facebook reported its earning after bell and noted that 2.8 billion regular users across its family of apps — which includes Instagram, WhatsApp, Messenger and Facebook’s core social network — up from the year previous. More than 1.6 billion people visit Facebook on a daily basis.

“We had a good quarter and our community and business continue to grow,” Facebook CEO Mark Zuckerberg said in a statement. “We are focused on making progress on major social issues and building new experiences that improve people’s lives around the world.”

Earlier in the day, Facebook agreed to pay a £500,000 fine in the UK over the Cambridge Analytica scandal hours before the release of its third-quarter earnings report.

The settlement comes after a case brought by the UK Information Commissioner's Office (ICO) in July 2018, which the social network appealed in November 2018, over the accusation that data was harvested from millions of people’s Facebook profiles without their consent.

As part of the agreement, the social network and the ICO have withdrawn their appeals, with Facebook not admitting liability, but paying the highest fine possible, as the scandal occurred before the EU’s general data protection regulation was implemented in 2018.

“Protecting people’s information and privacy is a top priority for Facebook, and we are continuing to build new controls to help people protect and manage their information,” said Harry Kinmonth, a lawyer representing Facebook, in a statement.

Facebook's stock closed slighty down to $188.25 but increased 2.2% to $192.55 in after-market trading. 

--updates with 3Q figures--

Quick facts: Facebook Inc

Price: 201.34 USD

NASDAQ:FB
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