Meta, formerly known as Facebook, has released its financial report for the second quarter of 2023, showcasing growth in various areas, except for its virtual and augmented reality division. The company’s user base continues to expand, with a combined daily audience of 3.07 billion users across WhatsApp, Instagram, Messenger, and Threads. This represents a 7% increase from the same period last year.
The monthly users for Meta reached 3.88 billion, reflecting a 6% growth rate. Furthermore, Facebook’s daily users saw a notable increase of 6% to reach 2.06 billion. The number of Facebook users per month also rose to 3.03 billion, showing a 3% increase.
Regarding advertising, Meta experienced a significant boost in ad impressions, with a 34% increase across all divisions. However, the average ad price declined by 16%. Despite this, the company’s revenues stood at $32.0 billion, marking an 11% increase and a 12% growth on a constant currency basis year-over-year.
While the overall financial performance appears positive, Meta also faced rising costs and expenses, amounting to $22.61 billion, up 10% from the previous year. This includes legal expenses of $1.87 billion and restructuring charges of $780 million in the second quarter of 2023.
The company also invested heavily, with investment expenses, including principal payments on finance leases, totaling $6.35 billion. Additionally, Meta engaged in share repurchases, buying $793 million of Class A common stock. As of June 30, 2023, the company had $40.91 billion available for further repurchases.
Meta maintained a healthy cash reserve, holding $53.45 billion in cash, cash equivalents, and marketable securities as of June 30, 2023. The company’s free cash flow was reported at $10.96 billion. However, it also had long-term debt amounting to $18.38 billion.
The headcount of Meta saw a decline of 14% from the previous year, with 71,469 employees. This reduction was partially due to layoffs in 2023, with half of the laid-off employees remaining until June 30, 2023.
Notably, Facebook’s daily user growth increased by 30 million compared to the previous quarter, which is crucial considering the decrease in audience experienced in the last quarter of 2021. Meta attributed part of this growth to its short video service, Reels, which garnered approximately 200 billion plays daily.
However, the report also revealed challenges in Meta’s virtual and augmented reality division, Reality Labs. The department recorded an operating loss of $3.7 billion for the reporting quarter. Over time, Reality Labs has accumulated significant losses, amounting to $21.3 billion since the beginning of 2022.
Despite the challenges in its Reality Labs division, Meta remains focused on innovation and growth, aiming to adapt to changing user preferences and demands. As the company continues to invest in new ventures and improve existing services, the tech world eagerly awaits its future developments.