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Jun 30, 2023
Meta Q2 2023 Earnings Report
Meta's Q2 2023 results showcased strong engagement across its apps and significant advancements in its AI and metaverse initiatives.
Key Takeaways
Meta Platforms, Inc. reported an 11% increase in revenue to $31.999 billion for Q2 2023. The company's net income rose by 16% to $7.788 billion, with diluted earnings per share (EPS) increasing by 21% to $2.98. Strong growth in ad impressions and a focus on AI and metaverse investments highlighted the quarter.
Revenue increased by 11% year-over-year to $31.999 billion.
Net income grew by 16% year-over-year to $7.788 billion.
Diluted earnings per share (EPS) increased by 21% year-over-year to $2.98.
Family daily active people (DAP) reached 3.07 billion on average for June 2023, a 7% increase year-over-year.
Meta
Meta
Meta Revenue by Segment
Revenue by Segment
Family of Apps Revenue
CapyFin.comReality Labs Revenue
CapyFin.com Forward Guidance
Meta expects Q3 2023 total revenue to be in the range of $32-34.5 billion. Full-year 2023 total expenses are anticipated to be in the range of $88-91 billion. Reality Labs operating losses are expected to increase year-over-year in 2023.
Positive Outlook
- Expects third quarter 2023 total revenue to be in the range of $32-34.5 billion.
- Assumes a foreign currency tailwind of approximately 3% to year-over-year total revenue growth in the third quarter.
- The European Commission’s adoption of a final adequacy decision, which allows us to continue to provide our services in Europe.
- Expect full-year 2023 capital expenditures to be in the range of $27-30 billion.
- Expect the tax rate for the rest of the year to be similar to the second quarter of 2023.
Challenges Ahead
- Anticipates full-year 2023 total expenses will be in the range of $88-91 billion, increased from prior range due to legal-related expenses.
- Expects Reality Labs operating losses to increase year-over-year in 2023.
- Expects higher infrastructure-related costs next year, including increased depreciation expenses.
- Anticipates growth in payroll expenses as workforce composition evolves toward higher-cost technical roles.
- Continues to see increasing legal and regulatory headwinds in the EU and the US that could significantly impact the business and financial results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income