Facebook shares soar as it beats estimates on revenue and user numbers

Shares in Facebook jumped more than eight per cent in after-hours trading tonight, boosted by a welcome set of positive fourth quarter results for the beleaguered social media firm.

Revenue at Facebook rose to $16.9bn (£12.9bn) in the three months to 31 December, up 30 per cent compared to the same period last year and beating consensus estimates of $16.4bn as compiled by Refinitiv.

Helped by growth at Instagram and a rise in advertising revenue, net income rose to $6.9bn or $2.38 per share, compared to estimates of $2.19 per share.

Monthly active users rose to 2.32bn, largely in line with estimates and up nine per cent from a year earlier.

Read more: Facebook removes controversial app that pays teenagers for their data

The bumper results come in spite of Facebook’s unpopularity with politicians and regulators, including calls for founder Mark Zuckerberg’s resignation in November after allegations emerged of a cover-up campaign of Russian interference on its platform.

Its woes continued as reports surfaced today that Facebook had been paying teenagers to snoop on their private data via a research app that violated Apple’s terms of service.

"Facebook might have delivered its weakest quarterly revenue growth since listing in 2012, but these numbers are actually some of the most reassuring in its short history," said Hargreaves Lansdown equity analyst George Salmon.

"Not only are login trends in Europe improving after a stagnant couple of quarters, the group has beaten expectations on revenue and profit. Only time will tell if Mark Zuckerberg's ambitious plans to revolutionise Facebook pay off, but these results will go a long way towards regaining the trust of Wall Street."