Meta Platforms (META) reported second quarter earnings after the bell on Wednesday which estimates on the top and bottom line and sent the company's stock up as much as 5% in after-hours trading.
Meta's revenue numbers came in above estimates, totaling $32 billion against the $31.06 billion expected by Wall Street. The company also guided to revenue of $32 billion-$34.5 billion for the current quarter, more than the $31.2 billion expected by analysts.
The company reported earnings per share of $2.98, more than the $2.92 expected by analysts. The Facebook and Instagram parent reported ad revenue of $31.5 billion, more than the $30.43 billion expected.
Meta's ad impressions — key to the company's monetization of its platforms — jumped 34% year-over-year, as the price per ad went down by 16% in the same period. Facebook's daily active user counts also topped expectations, as the company reported 2.06 billion as compared to estimates of 2.03 billion.
"We had a good quarter," Meta CEO Mark Zuckerberg said in a statement. "We continue to see strong engagement across our apps and we have the most exciting roadmap I've seen in a while with Llama 2, Threads, Reels, new AI products in the pipeline, and the launch of Quest 3 this fall."
However, the company did report a wider operating loss than expected in its VR division Reality Labs. And the company expects to see these losses continue as it continues AR and VR investments. Reality Labs lost $3.74 billion in Q2, more than the $3.68 billion Wall Street expected the division to lose.
In a statement, CFO Susan Li said, "for Reality Labs, we expect operating losses to increase meaningfully year-over-year due to our ongoing product development efforts in augmented reality/virtual reality and investments to further scale our ecosystem."
The company's newest headset, the Meta Quest 3, will be coming out in the fall, just as the VR race is getting hotter with Apple (AAPL) entering the space with its mixed-reality headset, the Apple Vision Pro, later this year.
In 2022, Reality Labs lost more than $13 billion.
Further, Meta, which laid off more than 20,000 of its employees throughout 2022 and 2023, said it expects expenses to rise, as the company anticipates higher infrastructure and payroll costs. Meta, in a statement, said it's evolving its "workforce composition toward higher-cost technical roles."
Accordingly, the company said that its expenses for 2023 overall will come in between $88 billion-$91 billion, higher than the previously anticipated $86 billion-$90 billion range.
Allie Garfinkle is a Senior Tech Reporter at Yahoo Finance. Follow her on Twitter at @agarfinks and on LinkedIn.
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July 27, 2023 at 03:13AM
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Meta earnings: Facebook parent beats on revenue, guidance, stock climbs after hours - Yahoo Finance
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