Facebook's Sales Beat Estimates as Advertisers Ignore Scandals

Facebook reported revenue that beat Wall Street estimates as advertisers stuck with the social media company through a series of privacy scandals, according to Bloomberg.

The company said fourth-quarter sales were $16.91 billion, ahead of the $16.4 billion analysts expected. Earnings also topped expectations, sparking a share surge of more than 11 percent in extended trading on Wednesday.

Facebook’s audience grew, bolstering its ability to collect data from users that can lure advertisers. Daily active users averaged 1.52 billion in December, up 9 percent from a year earlier and slightly ahead of Wall Street forecasts. The company also reported an uptick in users in mature markets like Europe, which investors were concerned had reached saturation.

Instagram’s Stories product has 500 million users now, CEO Mark Zuckerberg said on the conference call. The company is focusing on making more of its messaging services encrypted by default, as well as expanding shopping on Instagram, he added.

During the key holiday quarter, the company raked in profit of $6.9 billion, or $2.38 a share. Analysts were looking for per-share profit of $2.18. The latest period was helped by a lower tax rate.