Meta, the tech giant behind popular social media platforms like Facebook, Instagram, Threads, and WhatsApp, stunned the industry with its Q3 2023 financial results. The company reported a whopping $11.5 billion in revenue, beating all predictions.
The most remarkable aspect of Meta's financial performance is its net income, which reached a record-breaking $11.58 billion. This is an astounding 164% increase over the same period last year, when it was $4.4 billion. This phenomenal growth is due to a combination of factors, including lower expenses, a leaner workforce, and an increase in ad impressions across Meta's suite of applications.
Meta's total expenses for 2023 decreased 7% year-over-year to $20.40 billion. This reflects the company's strategic restructuring, which included a 24% year-over-year reduction in headcount. However, this figure does not include many employees who were terminated and are no longer part of the reported workforce.
The primary driver of Meta's revenue growth was a significant increase in ad impressions, which grew 31% year-over-year. This was accompanied by a 6% decrease in the average price per ad, making advertising more affordable and attractive to a wider range of customers. Advertising accounts for nearly 95% of Meta's revenues, making this shift critical.
Meta's outlook for the fourth quarter of 2023 is optimistic, as the company expects to generate between $36.5 billion and $40 billion in revenue. This indicates that Meta is confident in maintaining its momentum and cementing its status as a leader in the technology industry.
Source: Best Sports Betting/Canada.
