Meta, formerly known as Facebook, recently released its quarterly financial report, showing significant growth in almost all areas, except for the virtual and augmented reality division. The company’s user base remains impressive, with 3.07 billion daily users across all Meta divisions, including WhatsApp, Instagram, Messenger, and Threads, marking a 7% increase from the previous year. Monthly users reached 3.88 billion, up by 6%.
Facebook, a key platform under Meta’s umbrella, continues to thrive with 2.06 billion daily users, reflecting a 6% increase. Monthly users on Facebook reached 3.03 billion, showing a 3% increase. The company’s ad impressions increased by 34%, but the average ad price decreased by 16%.
Meta’s revenue reached a staggering $32.0 billion, marking an 11% increase, and a 12% year-over-year growth on a constant currency basis. However, expenses also saw a rise, with costs and expenses reaching $22.61 billion, up 10% from the previous year. This includes accrued legal expenses of $1.87 billion and restructuring charges of $780 million in the second quarter of 2023.
The company’s investment expenses, including principal payments on finance leases, totaled $6.35 billion. Meta also invested in share repurchases, spending $793 million of Class A common stock, with $40.91 billion available for further repurchases.
Despite impressive financial figures, the company’s headcount experienced a 14% decline from the previous year, with 71,469 employees. Notably, half of the employees laid off in 2023 were still included as of June 30, 2023.
Facebook’s daily users saw growth of 30 million compared to the previous quarter, which is a significant rebound considering the audience decrease experienced in the last quarter of 2021. The growth was partly attributed to Reels, a short video service similar to TikTok and YouTube Shorts, which records around 200 billion plays daily.
However, Meta’s Reality Labs, the division focusing on virtual and augmented reality devices, faced challenges. In the reporting quarter, the department recorded an operating loss of $3.7 billion, and its revenue for the quarter was $276 million. These figures represent a decline from the previous quarter, which saw revenue of $339 million. The division has incurred substantial losses, reaching $13.9 billion in the previous year and $3.99 billion in the first quarter, leading to cumulative losses of $21.3 billion since the beginning of 2022.
Despite the struggles in its Reality Labs division, Meta’s overall performance remains robust. As the company continues to invest in innovative platforms and technologies, it will be interesting to see how it navigates the challenges in the virtual and augmented reality space and maintains its impressive growth in other divisions.
