One of the key highlights of the report is the impressive user base across all of Meta’s divisions. Daily users (DAP) reached a staggering 3.07 billion on average for June 2023, reflecting a notable 7% increase compared to 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 an increase, reaching 3.88 billion with a growth rate of 6%. Specifically, Facebook daily users (DAUs) rose to 2.06 billion, representing a 6% increase. Moreover, Facebook monthly users (MAUs) totaled 3.03 billion, growing by 3% year-over-year.
Ad impressions across all Meta divisions experienced a significant boost, with a 34% increase. However, the average ad price declined by 16%.
The financial figures also showcased impressive revenues of $32.0 billion, indicating an 11% increase and an impressive 12% year-over-year growth on a constant currency basis.
Despite the positive results, Meta also faced increasing costs and expenses, totaling $22.61 billion, a 10% rise from last year. This included accrued legal expenses of $1.87 billion and restructuring charges of $780 million in the second quarter of 2023.
Investment expenses, including principal payments on finance leases, amounted to $6.35 billion. The company also allocated $793 million for repurchasing Class A common stock, and as of June 30, 2023, Meta had $40.91 billion available for repurchase.
Meta’s financial standing remains strong, with $53.45 billion in cash, cash equivalents, and marketable securities. Free cash flow for the reporting period was an impressive $10.96 billion.
However, the report also highlighted challenges within the company. The headcount of employees stood at 71,469, reflecting a 14% decrease from the previous year. Additionally, Meta’s Reality Labs division, responsible for developing virtual and augmented reality devices, reported an operating loss of $3.7 billion for the quarter. This comes after a previous loss of $13.9 billion last year and $3.99 billion in the first quarter of 2023, amounting to cumulative losses of $21.3 billion since the beginning of 2022.
Mark Zuckerberg, the CEO of Meta, pointed out the growth in Facebook’s daily users, with an increase of 30 million compared to the previous quarter. This is a significant milestone considering Facebook’s previous audience decrease in the last quarter of 2021. The growth was partly attributed to the success of Reels, a short video service similar to TikTok and YouTube Shorts, which now garners approximately 200 billion daily plays.
On the other hand, Meta Reality Labs is facing challenges in generating profits. With an operating loss of $3.7 billion for the reporting quarter and cumulative losses of $21.3 billion since 2022, this division has yet to achieve its desired financial performance.
Despite these challenges, Meta remains a dominant force in the tech industry, continuously innovating and expanding its user base across its various platforms. As the company strives to overcome hurdles and drive growth, the industry will be closely watching its strategies and innovations in the coming quarters.
