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Sep 30, 2023

Meta Q3 2023 Earnings Report

Meta reported financial results for the quarter ended September 30, 2023.

Key Takeaways

Meta's Q3 2023 earnings revealed a strong performance with a 23% increase in revenue year-over-year, reaching $34.15 billion. Net income soared by 164% to $11.58 billion, and diluted EPS increased by 168% to $4.39. The company also saw growth in daily and monthly active users across its Family of Apps and Facebook.

Revenue increased by 23% year-over-year to $34.15 billion.

Net income increased by 164% year-over-year to $11.58 billion.

Diluted earnings per share (EPS) increased by 168% year-over-year to $4.39.

Ad impressions delivered across the Family of Apps increased by 31% year-over-year.

Total Revenue
$34.1B
Previous year: $27.7B
+23.2%
EPS
$4.39
Previous year: $1.64
+167.7%
Daily Active People
3.14B
Previous year: 2.93B
+7.0%
Facebook DAUs
2.09B
Previous year: 1.99B
+5.0%
Ad impressions increase
31%
Gross Profit
$27.9B
Previous year: $22B
+27.0%
Cash and Equivalents
$36.9B
Previous year: $14.3B
+157.8%
Free Cash Flow
$13.6B
Previous year: $317M
+4202.5%
Total Assets
$216B
Previous year: $179B
+20.9%

Meta

Meta

Meta Revenue by Segment

Forward Guidance

Meta expects fourth quarter 2023 total revenue to be in the range of $36.5-40 billion. Full-year 2023 total expenses are expected to be in the range of $87-89 billion. Full-year 2024 total expenses to be in the range of $94-99 billion.

Positive Outlook

  • Expects fourth quarter 2023 total revenue to be in the range of $36.5-40 billion.
  • Guidance assumes a foreign currency tailwind of approximately 2% to year-over-year total revenue growth in the fourth quarter.
  • Anticipates full-year 2023 total expenses will be in the range of $87-89 billion, lowered from prior range.
  • Expects 2023 capital expenditures to be in the range of $27-29 billion, updated from prior estimate.
  • Expects fourth quarter 2023 and full-year 2024 tax rates to be similar to the third quarter of 2023.

Challenges Ahead

  • Expects Reality Labs operating losses to increase year-over-year in 2023.
  • Expects full-year 2024 total expenses to be in the range of $94-99 billion.
  • Expects depreciation expenses in 2024 to increase by a larger amount than in 2023.
  • Anticipates growth in payroll expenses as we work down our current hiring underrun and add incremental talent to support priority areas in 2024.
  • Expects Reality Labs operating losses to increase meaningfully year-over-year due to ongoing product development efforts.

Revenue & Expenses

Visualization of income flow from segment revenue to net income