META Reports Modest Q1 2023 Results with Steady User Growth
META$Meta Platforms (META.US)$, formerly known as Facebook, has reported Q1 2023 results, with revenue of$28.65 billion, a3%year-over-year increase, and a6%increase on a constant currency basis. The company’s Family daily active people (DAP) and monthly active people (MAP) both increased by5%year-over-year, with DAP averaging at3.02 billionfor March 2023 and MAP reaching3.81 billionas of March 31, 2023. Facebook daily active users (DAUs) also saw a4%year-over-year increase, with2.04 billionon average for March 2023, while monthly active users (MAUs) increased by2%year-over-year, reaching2.99 billionas of March 31, 2023.
In the first quarter of 2023, ad impressions delivered across the Family of Apps increased by26%year-over-year, while the average price per ad decreased by17%year-over-year. Total costs and expenses were$21.42 billion, an increase of10%year-over-year, including restructuring charges of$1.14 billionin Q1 2023. META has been pursuing measures to increase efficiency and realign business priorities since 2022 and has substantially completed the employee layoffs as of March 31, 2023. The company also announced three rounds of planned layoffs in March 2023, targeting approximately 10,000 employees across the Family of Apps and Reality Labs segments, with expected total pre-tax severance and related personnel costs of approximately$1 billion.
Despite the modest increase in revenue and significant costs and expenses, META has shown steady user growth across its platforms. The decrease in the average price per ad may have been a factor in the revenue growth, but the increase in ad impressions could lead to future revenue growth if the company can increase the average price per ad. META’s restructuring efforts and layoffs could lead to greater efficiency and cost savings in the future, but it remains to be seen how these initiatives will affect the company’s performance in the long term.
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