San Francisco: Facebook Parent company Meta’s first-quarter results exceeded Wall Street’s modest expectations on both profit and revenue, sending its stock higher in after-hours trading.
Meta reported that its flagship platform — Facebook — has a monthly user base nearing 3 billion, and that its revenue guidance for the current quarter was also above analyst estimates.
“Our AI work is driving great results across our apps and business,” CEO Mark Zuckerberg said in a statement. “We’re also becoming more efficient so we can build better products faster and position ourselves stronger to deliver on our long-term vision.”
Meta Platforms Inc said on Wednesday it earned $5.71 billion, or $2.20 per share, in the January-March period. That’s down 19% from $7.47 billion, or $2.72 per share, a year ago. Results in the latest quarter were weighed down by restructuring charges.
Revenue increased 3% to $28.65 billion from $27.91 billion.
Analysts on average were expecting earnings of $2.02 per share on revenue of $27.67 billion, according to a survey by FactSet.
Meta said it was “largely accomplished”. lay off It first announced in 2022. It announced a second round of layoffs in March.
For the current quarter, Meta said it expects revenue of $29.5 billion to $32 billion, which beat analysts’ expectation of $29.45 billion.
“In this economic climate — and after the 2022 disaster — 3% year-over-year revenue growth is an achievement,” said Debra Aho Williamson, an analyst at Insider Intelligence. “Meta’s strong guidance for second-quarter revenue is another indicator that the company may be starting to claw its way out.”
But, she said, Meta still has a lot of work to do — including completing a rebuild of its ad targeting capabilities “after the Apple privacy debacle,” to make a strong case for advertisers to “put them on Reels instead of TikTok.” Why invest, and keep restless creators in the fold.
Apple made privacy changes to its phones that make it harder for companies like Meta to track people for advertising purposes, hurting the company’s revenue — which comes mostly from ads on Facebook and Instagram.
“After being negatively impacted by Apple privacy changes, TikTok competition, Reels headwinds, heavy hiring and expense growth, meta has begun to find its way back,” said Dan Morgan, senior portfolio manager at Synovus Trust Company.
Meta said 3.02 billion people logged on to at least one app – Facebook, Instagram, WhatsApp or Messenger – every day in March. Facebook, still its largest platform and biggest source of advertising revenue, had 2.04 billion daily users and 2.99 billion monthly users, which were 4% and 2% year-over-year growth.
Shares of the Menlo Park, California-based company rose nearly 12% to $234.20 in after-hours trading.
Meta reported that its flagship platform — Facebook — has a monthly user base nearing 3 billion, and that its revenue guidance for the current quarter was also above analyst estimates.
“Our AI work is driving great results across our apps and business,” CEO Mark Zuckerberg said in a statement. “We’re also becoming more efficient so we can build better products faster and position ourselves stronger to deliver on our long-term vision.”
Meta Platforms Inc said on Wednesday it earned $5.71 billion, or $2.20 per share, in the January-March period. That’s down 19% from $7.47 billion, or $2.72 per share, a year ago. Results in the latest quarter were weighed down by restructuring charges.
Revenue increased 3% to $28.65 billion from $27.91 billion.
Analysts on average were expecting earnings of $2.02 per share on revenue of $27.67 billion, according to a survey by FactSet.
Meta said it was “largely accomplished”. lay off It first announced in 2022. It announced a second round of layoffs in March.
For the current quarter, Meta said it expects revenue of $29.5 billion to $32 billion, which beat analysts’ expectation of $29.45 billion.
“In this economic climate — and after the 2022 disaster — 3% year-over-year revenue growth is an achievement,” said Debra Aho Williamson, an analyst at Insider Intelligence. “Meta’s strong guidance for second-quarter revenue is another indicator that the company may be starting to claw its way out.”
But, she said, Meta still has a lot of work to do — including completing a rebuild of its ad targeting capabilities “after the Apple privacy debacle,” to make a strong case for advertisers to “put them on Reels instead of TikTok.” Why invest, and keep restless creators in the fold.
Apple made privacy changes to its phones that make it harder for companies like Meta to track people for advertising purposes, hurting the company’s revenue — which comes mostly from ads on Facebook and Instagram.
“After being negatively impacted by Apple privacy changes, TikTok competition, Reels headwinds, heavy hiring and expense growth, meta has begun to find its way back,” said Dan Morgan, senior portfolio manager at Synovus Trust Company.
Meta said 3.02 billion people logged on to at least one app – Facebook, Instagram, WhatsApp or Messenger – every day in March. Facebook, still its largest platform and biggest source of advertising revenue, had 2.04 billion daily users and 2.99 billion monthly users, which were 4% and 2% year-over-year growth.
Shares of the Menlo Park, California-based company rose nearly 12% to $234.20 in after-hours trading.