Meta, formerly known as Facebook, has released its quarterly financial report for the second quarter of 2023, showcasing growth in almost all areas except its virtual and augmented reality division, Reality Labs.
Users across all Meta’s divisions daily (DAP) reached an impressive 3.07 billion on average for June 2023, marking a 7% increase from the same period last year. This figure includes the combined audience of popular platforms like WhatsApp, Instagram, Messenger, and Threads.
Monthly users (MAP) also saw a positive growth of 6%, reaching 3.88 billion. Facebook daily users (DAUs) reached 2.06 billion, representing a 6% increase from last year. Similarly, Facebook monthly users (MAUs) reached 3.03 billion, with a 3% growth rate.
While ad impressions across all Meta divisions experienced a significant surge of 34%, the average ad price decreased by 16%. Despite this, Meta’s revenues recorded a commendable $32.0 billion, showing an 11% increase and a 12% year-over-year growth on a constant currency basis.
However, the financial report also shed light on the company’s costs and expenses, totaling $22.61 billion, a 10% increase from the previous year. This figure includes accrued legal expenses of $1.87 billion and restructuring charges of $780 million during the second quarter of 2023.
In terms of investment expenses, Meta reported $6.35 billion, including principal payments on finance leases. The company also made share repurchases of $793 million of Class A common stock, leaving $40.91 billion available for future repurchases.
As of June 30, 2023, Meta boasted a substantial cash, cash equivalent, and marketable securities reserve, totaling $53.45 billion. The company’s free cash flow stood at $10.96 billion.
However, Meta’s Reality Labs division, responsible for developing virtual and augmented reality devices, faced challenges in the second quarter. The division recorded an operating loss of $3.7 billion, highlighting the struggles in this particular segment.
Despite the overall growth, the company’s headcount decreased by 14% from the previous year, with 71,469 employees as of June 30, 2023. Notably, approximately half of the laid-off employees in 2023 were still included in the headcount.
One of the driving factors behind Facebook’s daily user growth of 30 million is the introduction of Reels, a short video service similar to TikTok and YouTube Shorts. Mark Zuckerberg revealed that Reels attracts approximately 200 billion plays daily, contributing to the platform’s positive momentum.
Threads, a new social platform, is also “developing quite well,” according to the corporation’s head. However, the same cannot be said for the Reality Labs division, which recorded an operating loss of $3.7 billion during the reporting quarter. The division’s financial performance has been concerning, with cumulative losses reaching $21.3 billion since the beginning of 2022.
As Meta continues to navigate the evolving tech landscape, the company’s focus on user engagement and new platform development will be critical in defining its future trajectory. Despite challenges in certain areas, the company’s growth in other divisions demonstrates its ability to adapt and innovate in an ever-changing industry.