Meta, the parent company of Facebook, has just released its quarterly financial report for the period spanning from April to June 2023, showcasing growth in various areas with a few notable exceptions. Overall, Meta’s user base continues to expand, with the combined daily active users (DAP) reaching an impressive 3.07 billion on average for June 2023, marking a 7% increase compared to the same period last year. This figure includes the audiences of WhatsApp, Instagram, Messenger, and Threads.
Meta’s monthly active users (MAP) have also seen growth, rising to 3.88 billion with a 6% increase. Facebook’s daily active users (DAUs) reached 2.06 billion, showing a 6% increase, while the number of Facebook’s monthly active users (MAUs) stands at 3.03 billion, reflecting a 3% rise.
In terms of advertising, Meta experienced a surge in ad impressions across all its divisions, with a significant 34% increase. However, the average ad price decreased by 16%. Despite this, revenues for the quarter reached an impressive $32.0 billion, marking an 11% increase year-over-year and 12% on a constant currency basis.
On the expense side, Meta’s costs and expenses amounted to $22.61 billion, a 10% increase from the previous year. These expenses included accrued legal expenses of $1.87 billion and restructuring charges of $780 million in the second quarter of 2023. Investment expenses, including principal payments on finance leases, reached $6.35 billion.
Share repurchases also took place, with $793 million of Class A common stock repurchased, and the company currently has $40.91 billion available for future repurchases. Meta’s cash, cash equivalents, and marketable securities amounted to $53.45 billion as of June 30, 2023. The company’s free cash flow was $10.96 billion, indicating its strong financial position.
On the downside, Meta faced a 14% reduction in headcount, with 71,469 employees as of June 30, 2023. This decrease was attributed to layoffs that took place in the previous year, affecting approximately half of the laid-off employees.
A notable highlight was Facebook’s daily users increasing by 30 million during the reporting period, a significant gain compared to the previous quarter. Mark Zuckerberg attributed part of this growth to the success of Reels, a short video service similar to TikTok and YouTube Shorts. Reels reportedly garners approximately 200 billion plays daily.
However, Meta Reality Labs, the division responsible for developing virtual and augmented reality devices, experienced challenges during the quarter. The division recorded an operating loss of $3.7 billion, contributing to cumulative losses of $21.3 billion since the beginning of 2022.
Despite the losses in the Reality Labs division, Meta’s overall financial report showcases strong performance in various areas. The company continues to expand its user base and remains a dominant player in the social media and technology industry. As Meta navigates through the ever-evolving landscape, the focus will be on capitalizing on its strengths while addressing challenges to maintain its trajectory of growth and success