Meta Q2 2023 Earnings Report
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
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