Meta reported strong advertising revenue growth in the second quarter of 2023 as its revenue rose 11% to $32 billion, topping analysts’ expectations. Ad revenue grew 12% in the quarter, faster than growth at Google. Adjusted earnings per share of $2.98 also beat expectations.
In after-hours trading, the company’s shares surged by almost 7%. They recorded a net income of $7.79 billion, or $2.98 per share, in the fiscal second quarter, compared to $6.7 billion, or $2.46 per share, in the same quarter previous year. Revenue grew 11% year on year to $32 billion, up from $28.8 billion in the previous quarter.
Meta’s forecast for third-quarter revenue is also above expectations. The company expects revenue to grow in the range of $32 billion to $34.5 billion in the third quarter. A resurgence in advertising, the monetization of Instagram and Reels, and AI-powered ad targeting and measurement all contributed to the quarter’s results.
The results come as a relief for Meta, which has been facing challenges in recent quarters. The company has been under pressure from regulators around the world, and it has also been losing users to newer platforms like TikTok. However, the strong advertising revenue growth suggests that Meta is still a major player in the digital advertising market.
Meta CEO Mark Zuckerberg said that the company is “seeing strong engagement across our apps” and that it has “the most exciting roadmap I’ve seen in a while.” He also said that Meta is investing heavily in new products and technologies, including the metaverse.
The sources for this piece include an article in Reuters.
