Meta Platforms (META.US) shares gain 3.8% in the after hour trading after the company released strong quarterly results. Meta Platforms' has seen a notable increase in user engagement across its platforms, with both daily and monthly active users showing steady growth. This uptick in user numbers is a positive sign, reflecting the company's enduring appeal and relevance. However, there's a shift in the advertising dynamics, as indicated by a 31% increase in ad impressions but a 6% decrease in the average price per ad. This suggests a changing landscape in digital advertising, where volume is up, but the value per unit is down. Revenue growth remains strong, with a 23% year-over-year increase, showcasing the company's robust financial performance despite global economic uncertainties.
Meta Platforms operating stats
- Family Daily Active People: Increased by 7% y/y to 3.14 billion
- Family Monthly Active People: Rose by 7% y/y to 3.96 billion
- Facebook Daily Active Users: Grew by 5% y/y to 2.09 billion
- Facebook Monthly Active Users: Increased by 3% y/y to 3.05 billion
- Ad Impressions and Price Per Ad: Ad impressions up by 31% y/y; average price per ad decreased by 6%.
Key financials
- Revenue: $34.15 billion, a 23% year-over-year increase.
- Costs and Expenses: Decreased by 7% year-over-year to $20.40 billion.
- Capital Expenditures: $6.76 billion for Q3 2023.
- Share Repurchases: $3.70 billion of Class A common stock in Q3 2023.
Meta Platforms has streamlined its operations and reduced costs, including a 24% reduction in headcount, as part of a strategic realignment initiated in 2022. This restructuring aims to enhance efficiency and focus on growth areas like augmented and virtual reality, while adapting to regulatory challenges impacting future operations.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appManagement commentary
- CFO Outlook for Q4 2023: Revenue expected to be $36.5-40 billion, with a 2% foreign currency tailwind.
- Full-Year 2023 Expense Forecast: Lowered to $87-89 billion, including about $3.5 billion in restructuring costs.
- Preliminary 2024 Outlook: Total expenses expected to be $94-99 billion; capital expenditures anticipated to be $30-35 billion, with growth driven by investments in servers, including both non-artificial intelligence (AI) and AI hardware, and data centers.
Meta Platforms (META.US) shares gained over 3.80% in after hour trading, reaching $311 after rebounding from the key psychological support level of $300 at the close of today's market.
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
