Meta exceeded its projected revenue of $31.06 billion by earning $32 billion. In addition, Meta forecasts revenue for the current quarter to be between $32 and $34.5 billion, compared to analysts' previous expectations of over $31.2 billion.
Meta's Ad revenue was estimated to be around $30.43 billion by experts, but they reportedly earned around $31.5 billion in Q2. Meta's ad impressions have also increased by 34% year over year, owing to a 16% decrease in the price per ad.
Mark Zuckerberg believes they had a good quarter and is excited about the upcoming one as well because they have some new apps planned for release in the third quarter. Meta is currently receiving high levels of engagement across apps, and they expect this to continue in Q3.
The good news is that Meta has completed the planned layoffs and is currently assessing facilities and restructuring data center initiatives.
Susan Li, CFO of Meta, also stated that the company may incur some losses as it continues to invest in VR. According to reports, Meta indicates third-quarter 2023 total revenues between $32 and $34.5 billion. Meta is also expected to earn a 3% year-on-year increase in total revenue due to currency exchange rates.
Because of legal expenses incurred in the second quarter, Meta's total expenses for the year are expected to be in the range of $88–$91 billion, up from the previous estimate of $86–$90 billion.
Now, with a 16% decrease in the price per ad and after a period of lower spending on digital ads, advertisers are increasing their spending again. However, spending is limited to trusted platforms such as Meta and Alphabet, which indicates that this trend may have an impact on less established players.
Meta also expects to incur $4 billion in restructuring costs due to facility consolidation and other personnel costs. Meta also reported a 3% year-over-year increase in daily and monthly active users on Facebook.
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