Meta reported second-quarter earnings and revenue that beat analysts' estimates and issued a better-than-expected forecast for the current period, reflecting the recovery in the digital advertising market.
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The stock rose about 7% in extended trading.
The results follow.
- Earnings: $2.98 per share versus $2.91 expected by Refinitiv.
- Revenue: $32 billion versus $31.12 billion expected by Refinitiv.
Wall Street is also focusing on these numbers from the report:
- Daily active users (DAUs): 2.06 billion versus 2.04 billion expected, according to StreetAccount.
- Monthly active users (MAUs): 3.03 billion versus 3 billion expected, according to StreetAccount.
- Average revenue per user (ARPU): $10.63 versus $10.22 expected, according to StreetAccount.
Revenue rose 11% from a year earlier, the first time the company reported double-digit growth since late 2021. Before the first quarter, revenue had fallen for three straight quarters as the company weighed on the recession-hit economy and Apple to iOS, which limited targeted advertising capabilities.
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The Facebook parent company forecast third-quarter revenue of $32 billion to $34.5 billion. Analysts polled ahead of the report had expected guidance of $31.3 billion, according to Refinitiv. That would represent an increase of at least 15% from a year earlier.
Meta shares have surged 159% in 2023 on hopes of a rebound in the advertising market and better profitability after massive layoffs. Net income rose to $7.79 billion, or $2.98 per share, from $6.69 billion, or $2.46 per share, a year earlier. Total costs and expenses rose 10% to $22.61 billion in the second quarter. A cost-saving plan has resulted in the cutting of about 21,000 jobs, and the company has lowered its 2023 capital expenditure forecast to $27 billion to $30 billion.
Meta's spending in 2024 is expected to increase due to investments in data centers and artificial intelligence. Total headcount fell 14% year-over-year to 71,469. The company plans to spend more on payroll costs for higher-cost technical roles. The Reality Labs unit generated $276 million in sales in the second quarter, while reporting a loss of $3.7 billion. The unit's losses will continue to increase due to ongoing AR/VR product development efforts and investments to scale the ecosystem.
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source of information: cnbc.com
