Meta founder and CEO Mark Zuckerberg speaks during the Meta Connect event at Meta headquarters in Menlo Park, California, on Sept. 27, 2023.
Josh Edelson | AFP | Getty Images
Meta shares jumped about 7% in extended trading on Wednesday after the company beat Wall Street estimates for revenue and profit and issued a better-than-expected forecast for the current period.
Here are the results:
Earnings: $5.16 a share vs. $4.73 per share expected by LSEG
Revenue: $39.07 billion vs. $38.31 billion expected by LSEG
Meta provided revenue guidance for the third quarter between the range of $38.5 billion to $41 billion. Analysts were expecting third-quarter sales guidance of $39.1 billion.
The social networking giant reported second-quarter revenue growth of 22% from $32 billion a year earlier, marking a fourth straight quarter of growth in excess of 20%.
Meta said that expenses in the second quarter was $24.2 billion, and that these expenses include the charge from Meta’s recent agreement to settle a facial recognition data lawsuit by the state of Texas for $1.4 billion.
The company reported capital expenditures of $8.47 billion for the second quarter, which was lower than the $9.51 billion that analysts estimated.
Regarding Meta’s outlook for expenses, the company said that total expenses for the year remain unchanged at $96 billion to $99 billion. Capital expenditures are up from the low range to $37 billion to $40 billion compared to $35 billion to $40 billion.
For user metrics, Meta reported that it had 3.27 billion daily active people (DAP) in the quarter, matching StreetAccount estimates. In the past, Meta reported daily and monthly active user numbers for its Facebook and Messenger apps. The DAP figure is the number of people accessing any of its apps.
“We had a strong quarter, and Meta AI is on track to be the most used AI assistant in the world by the end of the year,” Meta CEO Mark Zuckerberg said in a statement. “We’ve released the first frontier-level open source AI model, we continue to see good traction with our Ray-Ban Meta AI glasses, and we’re driving good growth across our apps.”
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