Meta, formerly known as Facebook, has released its quarterly financial report for the period from April to June 2023, showcasing robust growth in most areas, except for its virtual and augmented reality division. The company’s user base continues to expand, with an impressive 3.07 billion daily active users (DAP) across all of Meta’s divisions. This figure reflects a remarkable 7% increase from the same period last year and encompasses users from popular platforms like WhatsApp, Instagram, Messenger, and Threads.
The monthly active users (MAP) for Meta also saw a significant uptick, reaching 3.88 billion with a 6% increase. Facebook, as a core part of Meta’s offerings, continues to attract users, boasting 2.06 billion daily active users (DAUs), demonstrating a 6% increase compared to the previous year. Additionally, Facebook’s monthly active users (MAUs) grew to 3.03 billion, a notable 3% increase.
Ad impressions across all Meta divisions witnessed a substantial surge, soaring by 34%. However, the average ad price experienced a decline of 16%. Despite this, the company’s revenues reached an impressive $32.0 billion, showcasing an 11% increase and a 12% year-over-year growth on a constant currency basis.
While the financials show positive signs, the company did incur certain costs and expenses during the quarter. These expenses totaled $22.61 billion, which includes accrued legal expenses amounting to $1.87 billion and restructuring charges of $780 million. Moreover, investment expenses, including principal payments on finance leases, reached $6.35 billion.
During the same period, Meta utilized $793 million for share repurchases. As of June 30, 2023, the company still had $40.91 billion available for further repurchases. The company’s cash, cash equivalents, and marketable securities amounted to $53.45 billion, and free cash flow (Free cash flow) stood at $10.96 billion. However, long-term debt reached $18.38 billion.
The headcount at Meta declined by 14% compared to the previous year, with 71,469 employees as of June 30, 2023. Notably, around half of the employees laid off in 2023 are still included in this figure. A significant milestone during this quarter was Facebook’s daily user growth, which increased by 30 million. This growth is crucial, considering the decline in Facebook’s audience in the last quarter of 2021.
Mark Zuckerberg attributes part of this growth to Reels, a short video service similar to TikTok and YouTube Shorts. He claims that Reels enjoys an impressive 200 billion daily plays. Additionally, the new social platform Threads is reportedly “developing quite well,” adding to Meta’s expansion.
However, the news isn’t entirely rosy for Meta’s Reality Labs division, dedicated to virtual and augmented reality development. The division reported an operating loss of $3.7 billion for the reporting quarter, raising concerns. In terms of revenue, Reality Labs pulled in $276 million from April through June, down from the $339 million in the previous quarter. Cumulatively, the division recorded losses of $21.3 billion since the beginning of 2022.
Despite challenges in the virtual and augmented reality division, Meta’s overall financial performance remains strong. The company’s focus on user engagement and expanding its portfolio of platforms continues to pay off, positioning Meta as a major player in the tech industry. As the company navigates its way through the dynamic tech landscape, it remains to be seen how it will address the concerns raised by the performance of its Reality Labs division
