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The company also plans on resuming hiring once the layoffs are completed next month.
Facebook-parent Meta Platforms reported an unexpected increase in sales for the March quarter and also issued guidance that was better-than-expectations, leading to shares popping 12 percent in after-market trading.
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The company reported revenue of $28.65 billion, 3 percent higher than last year, and also higher than consensus expectations of $27.65 million. Meta reported topline of $27.95 billion in the year-ago quarter.
This is Meta's first increase in topline after three consecutive quarters of decline.
Among other parameters, Earnings per Share (EPS) also beat expectations of $2.03, coming in at $2.20. EPS took a 44 cents hit due to restructuring charges. Meta has cut over 21,000 jobs in a bid to reduce costs amidst a slowdown in advertising demand. CEO Mark Zuckerberg has dubbed 2023 the "year of efficiency."
The company is “becoming more efficient so we can build better products faster and put ourselves in a stronger position to deliver our long term vision,” the CEO said.
Net profit for the period, however, declined by 24 percent to $5.71 billion.
While Meta's Daily Active Users (DAUs) beat expectations, Monthly Active Users (MAUs) were in-line. Altogether, more than 3 billion people used at least one of its products daily — a new milestone. Meta, on average, earned $9.62 per user, higher than estimates of $9.3.
For the current quarter, Meta expects sales between $29.5 billion - $32 billion, while analysts expected the figure to be $29.5 billion. Expenses in 2023 are likely to be in the range of $86 billion - $90 billion, including restructuring costs between $3 billion - $5 billion.
However, Meta's metaverse or the "Reality Labs" business continues to burn cash with little to no sales. Reality Labs had sales halving from last quarter to $339 million but reported an operating loss of $3.99 billion. The figure was also lower than what analysts expected. Meta's capex for the year is said to be between $30 billion - $33 billion as it accounts for its increased artificial intelligence investments and its ad-supported products like the newsfeed and Reels.
The company also plans on resuming hiring once the layoffs are completed next month. Additions are likely in Reality Labs, ad infrastructure and, generative AI.
Meta shares jumped 11.6 percent in after-hours trading. On considering Wednesday's regular closing, Meta's shares have jumped nearly 2.5 times from their 52-week low of $88.09. The stock has also recouped all of 2022's losses, which was the company's worst year on record.
(With Inputs From Agencies.)
First Published: Apr 27, 2023 5:24 AM IST
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