META Reports Modest Q1 2023 Results with Steady User Growth

In the first quarter of 2023, ad impressions delivered across the Family of Apps increased by 26% year-over-year, while the average price per ad decreased by 17% year-over-year. Total costs and expenses were $21.42 billion, an increase of 10% year-over-year, including restructuring charges of $1.14 billion in 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.