Facebook Inc. reported an 18 per cent increase in first-quarter revenue, showing advertising demand was strong before the COVID-19 pandemic hit marketing budgets. The company also said business was steady in the first few weeks of April, sparking a surge in its shares.

The social-networking company said sales came in at US$17.7 billion, ahead of Wall Street estimates of US$17.3 billion, according to data compiled by Bloomberg. The results include just a few weeks in March when coronavirus lockdowns began to hammer the economy.

On March 24, Facebook warned that its advertising business was “weakening.” The company does not issue revenue guidance, but said on Wednesday that revenue in the first three weeks of April was roughly in line with the same period a year earlier.

“After the initial steep decrease in advertising revenue in March, we have seen signs of stability,” the company said in a statement.

Facebook shares jumped more than eight per cent in extended trading. They closed at US$194.19 in New York earlier.