Meta reports Q2 revenue up 11% YoY to $32B, net income up 16% YoY to $7.79B, and family daily active people up 7% YoY to 3.07B for June 2023; META jumps 10%+
but most of the new users came from outside the US and CanadaKarissa Bell / Engadget :Meta had its best quarter since 2021 despite losing more money on the metaverseAbubakar Idris / The Messenger : Meta Q2 Earnings Are Up as Company Looks to an AI-Powered Future Salvador Rodriguez / Wall Street Journal : Meta Sees Ad Business Rebound but Warns of Higher Spending in Metaverse Mike Wheatley / SiliconANGLE : Meta's stock rallies on strong earnings beat and bullish guidance Dan Gallagher / Wall Street Journal : Meta Takes Some Profitable Social Cues Nicola Agius / Search Engine Land : Meta's ad revenue up 12% in Q2, exceeding expectations Hannah Murphy / Financial Times : Meta posts strong revenue growth as it touts bet on AI tools Agence France-Presse : Meta Revenue Reaches $32 Bn As Ad Revenue Surges Caitlin Huston / Hollywood Reporter : Meta Reports Higher Quarterly Revenue Amid “Year of Efficiency” Catherine Thorbecke /CNN : Meta stock climbs after company posts 11% revenue growth Jason Aycock / Seeking Alpha : Meta Platforms surges as ad recovery offers revenue windfall, strong guidance Channel NewsAsia : Facebook parent Meta forecasts quarterly revenue above estimates Jon Swartz / MarketWatch : Meta earnings rise on digital ads, AI push as revenue jumps 11% Derek Saul / Forbes : Meta Earnings: Stock Rallies As Facebook Parent Notches Most Profitable Quarter Since 2021 Todd Spangler / Variety : Meta Q2 Revenue Up 11% to $32 Billion in Earnings Beat Twitter: Gene Munster / @munster_gene : 2. The year of efficiency is over and that's ok. They guided for higher spending next year and the stock is still up 4%. Growth matters more than efficiencies. Investors don't care as much about profitability as they did nine months ago. It's about aggressively investing in AI. Jason Kint / @jason_kint : Speaking of delusional, is anyone listening to this? Is the public literally forgetting when Facebook has previously executed this roadmap repeatedly? Seriously? They have multiple lawsuits because of it. Gaslighting. /2 [video] Evan / @stockmktnewz : 3.88 Billion people use either Facebook, Instagram or WhatsApp on a monthly basis That means about 48.5% of the world's population uses a $META product each month Gene Munster / @munster_gene : 5. The platform is healthy and they will continue to innovative and release some efficiently built products (Threads and upcoming AI products later this year) and release some inefficiently built products like the metaverse. Eric Seufert / @eric_seufert : 2/ Meta saw a somewhat astonishing 12% year-over-year increase in advertising revenue in Q2 2023. [image] Gene Munster / @munster_gene : Zuckerberg is at war with Apple over the metaverse/spatial computing. He says Apple does not allow certain features (app tracking) that has hurt business (and helped consumers) and wants Meta to shape the next generation hardware for decades. Gene Munster / @munster_gene : 3. The year of efficiency over. It's now about the year of more efficient growth. 4. Investors are ok with increased investment. They guided for higher spending this year and next year and the stock is still up 7%. Gene Munster / @munster_gene : 3. The platform is healthy. Global DAU's grew 5% yy compared to 4% last quarter. US DAU's grew 2.5% compared to 2% in March. Threads did not impact these numbers. In the next couple of years DAU growth will likely end, so the focus shifts to monetization. Jason Kint / @jason_kint : Not one question from analysts about decision from highest court in the EU earlier this month. Instead Zuckerberg is still throwing BS at Apple regarding their move with ATT which arguably did more for consumer privacy than any single change in 25yrs. This is delusional. /1 [video] Gene Munster / @munster_gene : The 5 big picture takeaways for $META: 1. AI in the near term makes their products better. 2. Meta's ad business strength will likely continue in the low teens growth given stable macro and easy comps. George Hadjia / @ghadjia : That ad impressions growth with average price per ad also trending up is very bullish. $META [image] @ramahluwalia : Don't bet against Mark Zuckerberg. Unlike the CapEx binge at Google and Microsoft, Meta CapEx is *down* QoQ and flat YoY. That's in part b/c Meta is not in the Cloud business... @mikeisaac : “It has been a weird anomalous thing in the tech industry that there has not been an app for public discussions that hasnt reached a billion people,” Zuckerberg says, indirectly referencing Twitter on earnings call or “X, i guess it's called now,” he said, chuckling a bit Mike Swift / @swiftstories : From a regulatory perspective, this is the first time that general & administrative costs, which includes #litigation and #regulatory costs, @Meta has reached 13% of revenue, at least for some time. #privacy #antitrust. Perhaps not surprising given Meta's regulatory challenges. [image] Michael Acton / @macton93 : #Meta earnings - am I the only one who thinks “year of efficiency” sounds vaguely soviet? Dan Ives / @divestech : Meta with another positive data point for digital advertising uptick coupled by Google's quarter/outlook is a strong barometer of the current environment. Big Tech earnings so far speaks to a inflection in demand and the Street is laser focused on these dynamics with AI key 🐂🏆 Dan Ives / @divestech : The Zuckerberg comeback story for Meta over the last year is one for the ages. Rocky Balboa like comeback for Zuckerberg...back was against the wall and delivered. Super impressive in a choppy macro. [image] @thetranscript_ : A live $META thread of Q2 23 Earnings call: 1. On Reels and Reels monetization: “Reels plays exceed 200B per day across Facebook & Instagram...the annual revenue run rate across our apps now exceeding $10B from $3B last fall” - $META CEO [image] @richlightshed : Would love to know who the 2 million first-time Facebook Blue users were in the US this quarter? 2.5% growth in US/Canada daily active users 20 years after launch is pretty insane $META [image] @supbagholder : $META is no longer a story of cost control, it's a story of revenue growth, growing faster than all other big tech that reported so far. Jason Kint / @jason_kint : “we continue to see increasing legal and regulatory headwinds in the EU and the US that could significantly impact our business and our financial results.” - Facebook q2 2023 earnings. Eric Jhonsa / @ericjhonsa : Markets are now giving $META more leeway to spend more, and Zuck plans to take advantage of it. [image] @zerohedge : Meta starting to cut prices to keep volumes: Ad impressions +34%, est +17.8% Average price per ad -16%, est -11.2% Gene Munster / @munster_gene : The three key takeaway from $META's results: 1. Grew revenue by 11% vs. Street at 8%. Investors have been worried about the global ad market. Google and Meta's ad strength shows the ad market is healthy. Consumers are spending and advertisers are going after them. @mikeisaac : if i were more of a bro, i would say Meta is “crushing it” on quarterly earnings again https://www.nytimes.com/... Ophir Gottlieb / @ophirgottlieb : $META and $GOOGL showing that ads aren't dead, so the economy isn't dead... at least for now. Bellwether type news for consumer, IMHO. @kobeissiletter : BREAKING: Facebook parent, $META, has lost $13.7 billion on its Metaverse development over the last year. Management also sees these losses increasing this year. How has Meta not ditched the Metaverse yet? If they went all-in on AI instead, their stock would skyrocket. Conor Sen / @conorsen : we're so back *META PLATFORMS SEES 3Q REV. $32B TO $34.5B, EST. $31.18B Jason / @3peakstrading : That rally into the close almost like someone leaked $META earnings! Nice beat on Revenues a full billion above estimates $32B vs $31B and raising guidance Rihard Jarc / @rihardjarc : $META earnings are out: - Revenue $32B up 11% YoY - EPS $2.98 up 21% YoY - DAUs 3.07B up 7% YoY - Guidance 3Q rev $32B-$34.5B estimates $31.18B Growth is back! Great quarter! looking forward to the conference. Long! Threads: Dare Obasanjo / @carnage4life : Quite the contrast to yesterday's earnings from Snapchat. Dare Obasanjo / @carnage4life : It's looking really ironic that Tim Cook came up with App Tracking Transparency (ATT) to kill Meta's ads business but it's Meta's competitors who've had the worst time. Reddit & Twitter have...
Meta Investor Relations
Context & Ripple Effects
This quarter marks a turn from Meta's 2022 caution that the economic downturn would pressure digital advertising and require slower headcount growth. Revenue, profit and ad sales all resumed year-over-year growth, while management paired that recovery with plans to raise spending after its efficiency push.
The subsequent acceleration in Q3 revenue and profit growth makes this a useful early marker of a broader recovery in Meta's core business. At the same time, the concentration of new users outside the US and Canada makes the quality of monetization—not audience scale alone—the key issue for the next phase.
First-order effects
Meta enters the next quarter with stronger advertising momentum, a larger daily audience, and Q3 revenue guidance of $32B-$34.5B.
Management has room to shift from cost restraint toward higher spending, while investors must weigh that investment against the newly improving profit base.
Second-order effects
Advertisers gain a platform whose reach is still expanding, but the geographic mix means Meta must translate more of that incremental international audience into ad value to sustain growth.
A return to higher spending raises the stakes for Meta's product and infrastructure choices; the later increase in AI infrastructure capital-expenditure plans shows how that spending pivot became a central market concern.
Third-order effects
If audience additions continue to come chiefly from outside Meta's most established markets, its long-run growth will depend increasingly on improving monetization and ad performance rather than simply adding users.
The results point to a large-platform model in which a recovered ad engine finances renewed investment in AI and other strategic bets, though the return on that spending remains uncertain.
The trend: Meta is moving from an efficiency-led recovery toward using its global advertising distribution to fund a new investment cycle.
Meta with another positive data point for digital advertising uptick coupled by Google's quarter/outlook is a strong barometer of the current environment. Big Tech earnings so far speaks to a inflection in demand and the Street is laser focused on these dynamics with AI key 🐂🏆
2. The year of efficiency is over and that's ok. They guided for higher spending next year and the stock is still up 4%. Growth matters more than efficiencies. Investors don't care as much about profitability as they did nine months ago. It's about aggressively investing in AI.
Speaking of delusional, is anyone listening to this? Is the public literally forgetting when Facebook has previously executed this roadmap repeatedly? Seriously? They have multiple lawsuits because of it. Gaslighting. /2 [video]
3.88 Billion people use either Facebook, Instagram or WhatsApp on a monthly basis That means about 48.5% of the world's population uses a $META product each month
5. The platform is healthy and they will continue to innovative and release some efficiently built products (Threads and upcoming AI products later this year) and release some inefficiently built products like the metaverse.
The Zuckerberg comeback story for Meta over the last year is one for the ages. Rocky Balboa like comeback for Zuckerberg...back was against the wall and delivered. Super impressive in a choppy macro. [image]
Zuckerberg is at war with Apple over the metaverse/spatial computing. He says Apple does not allow certain features (app tracking) that has hurt business (and helped consumers) and wants Meta to shape the next generation hardware for decades.
3. The year of efficiency over. It's now about the year of more efficient growth. 4. Investors are ok with increased investment. They guided for higher spending this year and next year and the stock is still up 7%.
From a regulatory perspective, this is the first time that general & administrative costs, which includes #litigation and #regulatory costs, @Meta has reached 13% of revenue, at least for some time. #privacy #antitrust. Perhaps not surprising given Meta's regulatory challenges. […
3. The platform is healthy. Global DAU's grew 5% yy compared to 4% last quarter. US DAU's grew 2.5% compared to 2% in March. Threads did not impact these numbers. In the next couple of years DAU growth will likely end, so the focus shifts to monetization.
“It has been a weird anomalous thing in the tech industry that there has not been an app for public discussions that hasnt reached a billion people,” Zuckerberg says, indirectly referencing Twitter on earnings call or “X, i guess it's called now,” he said, chuckling a bit
Not one question from analysts about decision from highest court in the EU earlier this month. Instead Zuckerberg is still throwing BS at Apple regarding their move with ATT which arguably did more for consumer privacy than any single change in 25yrs. This is delusional. /1 [vide…
That rally into the close almost like someone leaked $META earnings! Nice beat on Revenues a full billion above estimates $32B vs $31B and raising guidance
Would love to know who the 2 million first-time Facebook Blue users were in the US this quarter? 2.5% growth in US/Canada daily active users 20 years after launch is pretty insane $META [image]
A live $META thread of Q2 23 Earnings call: 1. On Reels and Reels monetization: “Reels plays exceed 200B per day across Facebook & Instagram...the annual revenue run rate across our apps now exceeding $10B from $3B last fall” - $META CEO [image]
BREAKING: Facebook parent, $META, has lost $13.7 billion on its Metaverse development over the last year. Management also sees these losses increasing this year. How has Meta not ditched the Metaverse yet? If they went all-in on AI instead, their stock would skyrocket.
The 5 big picture takeaways for $META: 1. AI in the near term makes their products better. 2. Meta's ad business strength will likely continue in the low teens growth given stable macro and easy comps.
Don't bet against Mark Zuckerberg. Unlike the CapEx binge at Google and Microsoft, Meta CapEx is *down* QoQ and flat YoY. That's in part b/c Meta is not in the Cloud business...
$META earnings are out: - Revenue $32B up 11% YoY - EPS $2.98 up 21% YoY - DAUs 3.07B up 7% YoY - Guidance 3Q rev $32B-$34.5B estimates $31.18B Growth is back! Great quarter! looking forward to the conference. Long!
“we continue to see increasing legal and regulatory headwinds in the EU and the US that could significantly impact our business and our financial results.” - Facebook q2 2023 earnings.
The three key takeaway from $META's results: 1. Grew revenue by 11% vs. Street at 8%. Investors have been worried about the global ad market. Google and Meta's ad strength shows the ad market is healthy. Consumers are spending and advertisers are going after them.
It's looking really ironic that Tim Cook came up with App Tracking Transparency (ATT) to kill Meta's ads business but it's Meta's competitors who've had the worst time. Reddit & Twitter have...
$META CEO: “There are now more than 3.8 billion people who use at least one of our apps every month. Facebook now has more than 3 billion monthly actives, with daily actives continuing to grow around the world, including in the U.S. and Canada” [image]
from meta earnings call: “There are now more than 3.8 billion people who use at least one of our apps every month.” Nearly half of all people on planet earth uses one of Meta's apps — IG, WA, FB, Mssgr — every month literally, not figuratively
“There are now more than 3.8 billion people who use at least one of our apps every month.” - Zuck About time they start listing falling fertility rates in wealthy countries as a business risk in SEC filings
I've been critical of Facebook since long before it was commonplace, and when it was riskier too. And of the metaverse. But Meta made $8 billion in *profit* last quarter. “Losing” an avg of $3.5b/quarter over that time is not the neg you think it is. https://www.cnbc.com/...
Reality Labs, the $META metaverse folly, has generated **$20 billion** in losses over the past 18 months. And you think Zuck is going to make Threads, Reels and AI work?
Something I don't understand about the Reality Labs sneering: Would you rather Facebook better lined it's executives' and investors' pockets? Would you rather it bought back its own stock? All money is dirty, maybe Meta is squandering it, but the alternative isn't orphanages.
earnings call is basically all the financial analysts saying “hey great job! how long are you going to be spending billions on VR/AR, please dont b/c we like money” and mark saying “please chill”
Regardless of the stock price movement, I'd like to remind you that there's no sign WHATSOEVER that $META is tapering their Reality Labs losses Guidance for FY24 is for a meaningful increase in the losses Good to remember during the next downturn
Ever noticed how $META keeps pouring money into the Metaverse, despite huge losses? It's like watering a plant that refuses to grow. Imagine if they shifted gears to #AI even earlier. Their value could be reaching for the stars instead.
Rony only had about $3 billion to start @magicleap. Much of the Meta spend is in custom silicon. Once you visit a semiconductor fab you see why it is so expensive. No other human endeavor like it.
Imagine if on earnings today Zuck announced MASSIVE cuts in Capex spend on Reality Labs. $META stock would moon. 🚀🚀 I know he won't do that but a man can dream. 🥲
Ad revenue reached a 6-quarter high for Meta $META after rising 12.1% QoQ to reach $31.5B, while FCF more than doubled YoY from $4.45B to $10.95B. Meta also boosted its Q3 and full year revenue outlook, seeing Q3 revenues of $33.25B at midpoint, more than $1B ahead of...
$META Ads CPMs are really performing very well into Q3. I'm expecting a very good guide. Only negative we can expect this quarter is Reality Labs, as usual, we know for a fact they will invest even more and increase operating losses [image]
When your CFO communicates in Q3 having significant revenue risk in the EU because of something possibly happening that actually appears to now be happening yet punts on projecting Q4 revenues, what is the point of earnings calls? /3 [video]
Facebook Q2 revenues were up 11% over the prior year, its first double-digit growth rate since Q4 2021. Net income increased 16% to $7.8 billion. Guidance for Q3 revenue is $32-$34.5 billion, well above analyst estimates of $31.3 billion. Stock is up 8% after hours. $META [image]
$META Very nice quarter and guidance. Q2 revenues and Q3 revenue guidance both $1 billion above estimate. Best part is midpoint of capex guidance $3 billion below consensus. Well done! [image]