Meta, the parent company of Facebook, seems to be reaping the rewards of its “year of efficiency.” In the quarter ending in June, the company reported a revenue of $32 billion, showing an 11% increase compared to the same period last year and surpassing Wall Street’s expectations. This marks Meta’s second consecutive quarter of revenue growth, a positive turnaround after a challenging 2022 marked by revenue declines.
The company’s profits also saw an impressive boost, reaching $7.79 billion for the quarter, a 16% increase compared to the previous year, exceeding analysts’ estimates.
Meta CEO Mark Zuckerberg expressed satisfaction with the results and highlighted strong engagement across their apps. He emphasized the exciting roadmap ahead, which includes new products like Llama 2, Threads, Reels, and upcoming AI developments. Additionally, the highly anticipated launch of Quest 3 in the fall promises further growth opportunities.
Facebook‘s daily active users reached 2.06 billion, a 5% increase year over year, while the monthly active user base also grew by 3% compared to the previous year.
This positive performance comes at a time when the demand for digital ads is picking up momentum again, and investor enthusiasm for AI continues to support the tech sector.
The turnaround can be attributed to the implementation of Zuckerberg’s “year of efficiency” plan, which was announced in February following a tough year marked by fierce competition, challenges from Apple’s app privacy changes, and decreased digital ad spending amidst broader macroeconomic uncertainties. The plan involved significant cost-cutting measures and substantial layoffs, which aimed to strengthen the company’s position as a technology leader and improve its financial results.
While the company has already seen promising results with Threads, Zuckerberg emphasized that the focus is currently on user retention and improvement. Monetization will follow later, following the playbook the company has successfully used for other platforms like Facebook, Instagram, WhatsApp, stories, and reels.
Investors responded positively to the earnings results, with Meta shares jumping around 4% in after-hours trading.
