Meta Q3 Revenue Surges 23%, Profit More Than Doubles to $11.6 Billion
25.10.2023 - 20:41
/ variety.com
Todd Spangler NY Digital Editor Tech giant Meta‘s advertising business is roaring back, as the parent of Facebook and Instagram exceeded Wall Street’s third-quarter 2023 earnings forecasts. Meta reported Q3 revenue of $34.15 billion, up 23%, and net income more than doubling to $11.58 billion (or $4.39 per share). The results come after the company suffered year-over-year revenue declines in the last nine months of 2022, leading CEO Mark Zuckerberg to slash more than 21,000 jobs.
“We had a good quarter for our community and business,” Zuckerberg said in announcing the earnings Wednesday. “I’m proud of the work our teams have done to advance AI and mixed reality with the launch of Quest 3, Ray-Ban Meta smart glasses, and our AI studio.” Wall Street analyst consensus estimates for Q3 were for revenue of $33.56 billion and EPS of $3.63, according to data provider Refinitiv. Meta issued bullish revenue guidance for the fourth quarter of 2023, pegging sales to be in the range of $36.5 billion-$40 billion (compared with $32.17 billion in the year-earlier period).
Zuckerberg, the company’s controlling shareholder, continues to plow cash from Meta’s core social apps into its money-losing Reality Labs AR/VR division, whose products include the recently launched Oculus 3 headset. For Q3, Reality Labs generated $210 million in revenue (down 26%) and an operating loss of $3.74 billion (up 2%). In 2024, Meta said it expects Reality Labs operating losses to “increase meaningfully year-over-year” as it invests in product development.
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