Meta Posts 23% Growth as Ads Rebound, With Profit More Than Doubling
The results underscored Meta’s resilience amid a tumultuous few years for Silicon Valley. The company saw record profit and user growth in the early days of the pandemic, as people were forced indoors and connected through their devices and apps. But the easing of the pandemic, combined with higher interest rates and global economic uncertainty, later hit Meta. The company reduced its work force by roughly a third and flattened its organizational structure.
“The company may be starting to come out of the woods as the Mark Zuckerberg-led company continues to focus on improving operating efficiency,” said Jesse Cohen, senior analyst at Investing.com.
Meta’s user growth continued in some of its key markets, including the United States and Canada. About 3.14 billion people use one or more of the company’s apps every day, up 7 percent from last year. Nearly half the people on the planet — almost four billion — use one or more of Meta’s apps each month.
Threads, Meta’s Twitter competitor, is doing well with just under 100 million users, the company said. Mr. Zuckerberg said he expected to continue adding features to the app to keep people coming back to it.
Meta added that it expected revenue in the current quarter to be $36.5 billion to $40 billion. It also forecast that expenses would be lower next year than previously anticipated, at $87 billion to $89 billion, down from previous guidance of $88 billion to $91 billion. Meta added that it expected its losses from its Reality Labs division, which is working on products related to the metaverse, to continue increasing next year.