Meta, the parent company of Facebook, exceeded market expectations for quarterly earnings, driven by a rebounding digital ad business. The company reported a profit of $7.8 billion on $32 billion in revenue in the recently ended quarter, with monthly Facebook users reaching 3.03 billion.
Despite a challenging 2022 due to economic factors and Apple’s privacy changes, Meta’s share price has performed exceptionally well in 2023, aligning with CEO Mark Zuckerberg’s prediction of the “year of efficiency.”
Ad revenue growth has been positive for two consecutive quarters, with double-digit revenue growth since late 2021. Advertisers’ interest in Reels, the TikTok-inspired video format, and a more favorable economic context for marketing spending have contributed to the company’s success.
Meta’s cost-cutting measures included laying off tens of thousands of employees, reducing the workforce by 14 percent from the previous year.
While Meta’s bet on the metaverse has faced criticism and slower-than-expected adoption, Zuckerberg remains confident in its potential as a future computing platform.
AI and the metaverse remain top priorities for Meta, with the company taking an open-source approach to its Llama generative AI technology, making it available to researchers and companies for adaptation.
Meta’s recent release of Threads, a text-only app, saw significant growth in downloads, and the company is now focused on retention and improvement.
Investors are eager to see how Meta expands the use of generative AI in its products, with plans for an AI platform to enhance collaboration between creators and advertisers.
Overall, Meta’s strong earnings and strategic initiatives have positioned the company well for growth and future developments.