meta platform (meta) First Quarter Results Reported The company also raised its forecast for the quarter and lowered its cost forecast.
Shares of the parent company of Facebook and Instagram surged 11% in after-hours trading, its highest level since January 2022. Meta, which has touted 2023 as its “year of efficiency,” said in a release that it has “substantially completed” layoffs for 2022, but plans to continue layoffs this year.
Last month, Meta announced it would be cutting 10,000 workersbased on the company’s previous layoffs announcement We will be back in November.
Here are the most significant numbers from Meta’s earnings compared to analyst estimates compiled by Bloomberg:
Earnings: Estimated $27.67 billion vs actual $28.65 billion
EPS: $2.20 actual and $2.01 estimated
Advertising revenue: Estimated $26.76 billion vs actual $28.1 billion
Family app earnings: Estimated $26.88 billion vs actual $28.3 billion
Reality Lab Loss of Operations: $3.99 billion, as opposed to an estimated $3.8 billion
Second Quarter Earnings: Estimated $29.48 billion vs. $29.5 billion to $32 billion
Meta CEO Mark Zuckerberg said in a statement:
“Our AI efforts are delivering positive results across our apps and business. We are also seeing greater efficiencies, allowing us to build better products faster and deliver on our long-term vision.” We can put ourselves in a stronger position for
And when it comes to the digital advertising slowdown that rattled the meta in previous revenue cycles, there appears to be light at the end of the tunnel.
The company’s advertising revenue was underpinned by a 26% year-over-year increase in ad impressions across Meta’s “family of apps,” which includes Facebook, Instagram and WhatsApp.
Cost reduction
If this revenue cycle is all about big tech cost cutting, perhaps no company is more ruthless than Meta.
In October, the company expected 2023 costs to range from $96 billion to $101 billion. In a release Wednesday, the company said it expects costs for the current year to rise from $86 billion to $90 billion, including restructuring charges.
It also causes losses for Reality Labs, the company’s metaverse arm.reality lab lost $13.7 billion 2022.
The company reported headcount at 77,114 at the end of the first quarter, down 1% from last year.
In its release, Meta said, “Substantially all employees affected by the layoffs announced in November 2022 are not reflected in the reported headcount as of March 31, 2023. In addition, employees affected by the 2023 layoffs reported our headcount as of March 31, 2023.”
Despite staff reductions like Alphabet (goog, Google) and Microsoft (MSFTMore), Meta is doing a buyback. The company will repurchase his $9.22 billion of its stock in the first quarter of 2023, and as of March 31, Meta has been authorized to repurchase his $41.73 billion of its stock. rice field.
Ally Garfinkle is a Senior Tech Reporter at Yahoo Finance. Follow her on her Twitter. @agarfinks and LinkedIn.
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