After the market closed on Wednesday; Meta Platforms (META) announced results for the first quarter that defied all expectations. The company also increased and decreased its expense forecast for the current quarter.
After-hours trading saw shares of the parent company of Facebook and Instagram rise as much as 11% to their highest level since January 2022. In the release, Meta, which declared 2023 to be its “Year of Efficiency,” stated that it had “substantially completed” its 2022 layoffs, despite continuing to do so this year. Meta’s announcement of 10,000 layoffs the previous month built on the company’s November layoff announcement.
Meta Platforms Appraisals
Revenue: $28.65 billion, as opposed to the estimated $27.67 billion; EPS: $2.20, as opposed to the estimated $2.01; Promoting Income: $28.1 billion, as opposed to the estimated $26.76 billion; Group of Applications Income: $28.3 billion, as opposed to the estimated $26.88 billion; Operating Losses at Reality Labs: $3.99 billion as opposed to the estimated $3.8 billion; Q2 Income: According to Meta CEO Mark Zuckerberg in a statement.
“We had a good quarter and our community continues to grow.” Actual revenue was between $29.5 billion and $32 billion, versus the estimated $29.48 billion. Our artificial intelligence work is driving great outcomes across our applications and business.
In addition, we are improving our efficiency so that we can produce superior products more quickly and better fulfill our long-term goals. Ad revenue increased by 26% year-over-year in Meta’s “Family of Apps,” which includes Facebook, Instagram, and WhatsApp, supporting the company’s ad revenue beat.
The company predicted in October that expenses would range from $96 billion to $101 billion in 2023. The company stated in the release on Wednesday that it now anticipates expenses for this year of $86 billion to $90 billion, including costs associated with restructuring.