Meta reported better-than-expected third-quarter results as revenue rose 23%, its fastest growth rate since 2021. The stock rose about 4% in extended trading on Wednesday.

Here are the most important numbers:

  • Earnings per share: $4.39 versus $3.63 expected from LSEG, formerly known as Refinitiv
  • Revenue: $34.15 billion versus LSEG’s expected $33.56 billion

Investors also pay attention to user numbers:

  • Daily Active Users (DAUs): 2.09 billion versus 2.07 billion expected, according to StreetAccount
  • Monthly Active Users (MAUs): 3.05 billion versus 3.05 billion expected, according to StreetAccount
  • Average Revenue Per User (ARPU): According to StreetAccount, $11.23 versus expected $11.05

Meta is seeing faster growth in its core digital advertising business as customers recover from a difficult 2022, when revenue fell for three straight quarters.

His business outperforms the competition. Google parent Alphabet said in its earnings report Tuesday that advertising revenue rose about 9.5%, while smaller rival Snap reported 5% revenue growth.

Much of Meta’s renewed acceleration appears to be because the company is furthest along in improving the effectiveness of its online ads after Apple made privacy changes to iOS in 2021 that make it harder for app developers have to target users. Meta has noted that its heavy investment in artificial intelligence is a key technology that has helped it attract retailers looking to offer targeted promotions to their customers.

For the fourth quarter, Meta expects sales of $36.5 billion to $40 billion. Analysts expected revenue of $38.85 billion for the quarter, according to LSEG. At the midpoint of the range, quarterly growth will be about 19% higher than last year.

According to Meta, 2023 spending will be between $87 billion and $89 billion, down from the previous forecast of $88 billion to $91 billion. Spending for 2024 will be between $94 billion and $99 billion.

Net income rose 164% to $11.58 billion, or $4.39 per share, compared with $4.4 billion, or $1.64 per share, a year earlier.

“We had a good quarter for our community and our business,” CEO Mark Zuckerberg said in a statement.

Meta’s Reality Labs division, which focuses on virtual reality and augmented reality technologies, reported operating losses of $3.74 billion in the quarter. The company has now lost nearly $25 billion since the start of last year. This happened after the release of the Quest 3 headset and other new products.

“I’m proud of the work our teams have done to advance AI and mixed reality with the launch of Quest 3, Ray-Ban Meta Smart Glasses and our AI Studio,” Zuckerberg said.

The company said it expects Reality Labs’ operating losses to “increase significantly compared to the prior year due to our ongoing augmented reality/virtual reality product development efforts and our investments to further scale our ecosystem.”

Meta employed 66,185 people as of September 30, a decline of 24% from the previous year. The company said “a significant majority of employees” involved in its major cost-cutting efforts are no longer included in its headcount.

“Starting in 2022, we have initiated several actions to increase efficiency and realign our business and strategic priorities,” Meta said in its earnings release. “As of September 30, 2023, we have substantially completed planned employee layoffs while continuing to evaluate asset consolidation and data center restructuring initiatives.”

Total costs and expenses fell 7% year-over-year to $20.4 billion, underscoring Zuckerberg’s “Year of Efficiency” declaration in February when he stressed the need for a leaner, more flexible workforce.

Meta’s stock price is up about 150% this year, making it the second-best performer in the S&P 500, behind only AI chipmaker Nvidia.

Correction: This story has been updated to clarify that Refinitiv is now known as LSEG. An earlier version of this story misspelled the company name.

REGARD: Attorneys general across the country file lawsuit against Meta over addictive features.

Source :

Leave a Reply

Your email address will not be published. Required fields are marked *