Meta reports 11% jump in revenue and issues optimistic guidance for third quarter

on Jul26
by | Comments Off on Meta reports 11% jump in revenue and issues optimistic guidance for third quarter |

Mark Zuckerberg, chief executive officer of Meta Platforms Inc., left, arrives at federal court in San Jose, California, US, on Tuesday, Dec. 20, 2022. 

David Paul Morris | Bloomberg | Getty Images

Meta‘s revenue climbed 11% in the second quarter as advertising rebounded, and the company issued an uplifting sales forecast for the third quarter.

Here are the results.

  • Earnings: $2.98 per share. That may not compare with the $2.91 per share expected by Refinitiv.
  • Revenue: $32.0 billion. That may not compare with the $31.12 billion expected by Refinitiv.

Wall Street is also watching several other numbers on the report:

  • Daily Active Users (DAUs):  2.04 billion expected, according to StreetAccount.
  • Monthly Active Users (MAUs): 3 billion expected, according to StreetAccount.
  • Average Revenue per User (ARPU): $10.22 expected, according to StreetAccount.

The company said revenue in the third quarter will be $32 billion to $34.5 billion. Analysts polled before the report were expecting third-quarter sales of $31.3 billion, according to Refinitiv. That suggests growth of at least 15% from a year earlier.

It’s the first time Meta has reported double-digit growth since the fourth quarter of 2021. Prior to the first quarter, revenue had declined in three straight periods as the company reckoned with a sputtering economy and Apple’s iOS privacy change, which limited ad targeting capabilities.

Meta’s Reality Labs unit, tasked with developing the metaverse, brought in $276 million in sales during the second quarter while recording a loss of $3.7 billion. Meta said that those losses will continue to “increase meaningfully year-over-year due to our ongoing product development efforts in augmented reality/virtual reality and investments to further scale our ecosystem.”

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