The parent company of Facebook revealed on Wednesday that it had earned $32 billion in sales for the quarter that ended in June, an 11% revenue growth over the same time last year and above Wall Street’s estimates.
After a tough 2022 that was characterized by revenue decreases, the results reflect Meta’s second consecutive quarter of revenue growth.
Facebook Reports 16% Revenue Growth
In addition to exceeding analyst expectations, the corporation posted quarterly profits of $7.79 billion, a 16% increase over the prior year.
The business reported that daily active Facebook users increased to 2.06 billion, up 5% over the previous year. Facebook’s monthly active user base also increased 3% over the previous year.
The results come at a time when the need for digital advertisements seems to be increasing once more, and investor excitement surrounding AI has recently supported the IT sector.
Following the company’s third consecutive quarter of revenue decline in February, Zuckerberg announced his plans for a year of efficiency after a difficult year in which the company dealt with fierce competition, issues with Apple’s app privacy changes, and lower digital ad spending amid broader macroeconomic uncertainty.
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Threads’ Impact on Meta’s Earnings and Stock Performance
Huge cost-cutting initiatives and widespread layoffs characterized the year. The single-largest round of downsizing in Meta’s history, the company announced in November of last year that it will lose 11,000 jobs. Zuckerberg stated in March that Meta will let go of another 10,000 staff.
The report was released only a few weeks after Twitter’s main rival, Threads, was launched by Meta. Even though user engagement has decreased, Meta has continually introduced features to the app in an effort to maintain the momentum.
The app attracted an astounding 100 million user signups in less than a week after its introduction. Following the release of the earnings results, Meta stock increased by almost 4% in after-hours trading.
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