Meta Platforms, the parent company of Facebook and Instagram, has reported a significant surge in earnings for the third quarter. The California-based company attributed this increase to a boost in advertising revenue and reduced expenses following a substantial workforce reduction. In the period spanning July to September 2023, Meta disclosed earnings of $11.58 billion, or $4.39 per share. This marks a notable increase from the previous year’s figures of $4.4 billion, or $1.64 per share. Additionally, revenue grew by 23%, ascending from $27.71 billion to $34.15 billion.
Meta’s founder and CEO, Mark Zuckerberg, expressed satisfaction with the quarter’s performance, citing advancements in AI and mixed reality through the launch of Quest 3, Ray-Ban Meta smart glasses, and the company’s AI studio. Family daily active people (DAP) averaged 3.14 billion for September 2023, signifying a 7% year-over-year increase. Family monthly active people (MAP) reached 3.96 billion by September 30, also showing a 7% year-over-year upswing. Facebook’s daily active users (DAUs) averaged 2.09 billion in September, reflecting a 5% year-over-year surge. Similarly, monthly active users (MAUs) on Facebook reached 3.05 billion by September 30, indicating a 3% year-over-year rise.
The third quarter of 2023 has witnessed a 31% year-over-year increase in ad impressions delivered across Meta’s Family of Apps. Conversely, the average price per ad saw a 6% year-over-year decrease. Revenue for the period amounted to $34.15 billion, marking a 23% year-over-year increase. Total costs and expenses experienced a 7% year-over-year reduction, amounting to $20.40 billion. Meta allocated $6.76 billion for capital expenditures, including principal payments on finance leases, for the third quarter of 2023. The company also repurchased $3.70 billion of its Class A common stock in the same period.
As of September 30, Meta had $37.22 billion available and authorized for repurchases. The company also reported $61.12 billion in cash, cash equivalents, and marketable securities. Notably, free cash flow for the third quarter of 2023 was $13.64 billion.
Looking ahead to the fourth quarter, Meta anticipates total revenue to fall within the range of $36.5 to $40 billion. The restructuring process to enhance efficiency and align business priorities has seen substantial progress, with planned employee layoffs nearing completion. Efforts to assess facilities consolidation and data center restructuring initiatives are ongoing. The outlook for full-year 2023 total expenses has been adjusted to $87-89 billion, down from the previous estimate of $88-91 billion. This revision includes approximately $3.5 billion in restructuring costs. Meta also expects an increase in Reality Labs’ operating losses year-over-year in 2023.
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