Meta revenue grows 11% in Q2 as company touts investments in threads and AI
Meta revenue grows 11% in Q2 as company touts investments in threads and AI
July 26, 2023 1:26 p.m.
revenue beat estimates in the second quarter, rising 11% to $32 billion , while the company also announced investments in Twitter rival Threads, as well as new AI products.
Net income rose 16% to $7.79 billion, while the company posted earnings per share of $2.98, compared to $2.46 in the same period a year earlier. Earnings per share estimates were $2.91.
Facebook daily active users were 2.06 billion in June, an increase of 5% from one year to the next.
The company also gave a positive outlook for the third quarter, with revenue in the range of $32 billion to $34.5 billion.
Meta stock rose more than 6% to $316.85 outside of office hours.
Meta said total costs and expenses increased 10% to $22.6 billion. dollars, with $1.87 billion in legal fees recorded in the quarter and $780 million in restructuring charges, following massive layoffs earlier this year.
The company also expects further spending growth in 2024 as it invests in AI and metaverse.
Meta CEO Mark Zuckerberg said in a statement that they "continue to see a strong engagement in our apps and we're having the most exciting roadmap I've seen in a while He cited Threads and AI, as well as Facebook's Reels, the Llama 2 next-gen language model, and the launch of the VR Quest 3 headset in the fall.
The company said it expects full-year capital expenditure are between $27 billion and $30 billion. billion, down from its earlier estimates. Meta said the reduced forecast is due to cost savings, particularly on non-AI servers, as well as changes in capital spending in 2024 due to delays in projects and equipment deliveries. /p>
revenue beat estimates in the second quarter, rising 11% to $32 billion , while the company also announced investments in Twitter rival Threads, as well as new AI products.
Net income rose 16% to $7.79 billion, while the company posted earnings per share of $2.98, compared to $2.46 in the same period a year earlier. Earnings per share estimates were $2.91.
Facebook daily active users were 2.06 billion in June, an increase of 5% from one year to the next.
The company also gave a positive outlook for the third quarter, with revenue in the range of $32 billion to $34.5 billion.
Meta stock rose more than 6% to $316.85 outside of office hours.
Meta said total costs and expenses increased 10% to $22.6 billion. dollars, with $1.87 billion in legal fees recorded in the quarter and $780 million in restructuring charges, following massive layoffs earlier this year.
The company also expects further spending growth in 2024 as it invests in AI and metaverse.
Meta CEO Mark Zuckerberg said in a statement that they "continue to see a strong engagement in our apps and we're having the most exciting roadmap I've seen in a while He cited Threads and AI, as well as Facebook's Reels, the Llama 2 next-gen language model, and the launch of the VR Quest 3 headset in the fall.
The company said it expects full-year capital expenditure are between $27 billion and $30 billion. billion, down from its earlier estimates. Meta said the reduced forecast is due to cost savings, particularly on non-AI servers, as well as changes in capital spending in 2024 due to delays in projects and equipment deliveries. /p>
