Meta Reports 3% Revenue Growth and 15% Profit Drop in Q1 2023
Meta reported its first-quarter earnings for fiscal year 2023 earlier, revealing revenue of $28.645 billion, a 3% increase from $27.908 billion in the same quarter last year. However, due to rising expenses of $21.418 billion, a 10% jump from $19.384 billion in the same quarter last year, profit was only $7.227 billion, a 15% drop from $8.524 billion in the same quarter last year. Net income was $5.709 billion, a 24% decline from $7.465 billion in the same quarter last year.
Regarding the number of users of family apps including Facebook, Instagram, WhatsApp and Messenger, the total daily active users reached 3.02 billion as of March this year, and the monthly active users reached 3.81 billion, both growing by 5%.
And Facebook’s daily active users accounted for 2.04 billion people, exhibiting a 4% annual growth rate, and monthly active users reached 2.99 billion people, with a 2% annual growth rate. Moreover, Facebook users increased by 37 million in the previous quarter, indicating that Facebook still has many users.
As for the advertising revenue generated by family apps, it rose by 26% compared to the same quarter last year, but the average price of advertising was 17% lower than the same quarter last year. In addition to that, announcing a massive layoff in March this year also increased expenditure costs.
Reality Labs still incurred a loss of about $4 billion in the previous quarter, but it was slightly reduced compared to the prior quarter. However, Meta anticipates that spending on Metaverse development will be higher this year. Nevertheless, Meta still prioritizes metaverse development but will also concentrate on artificial intelligence applications that are currently popular in the market. It also disclosed that the next virtual vision headset will be released in the latter half of the year.