Meta Reports Record Revenue but Daily Users Decline for First Time
Meta posted its best quarter ever with $56.31 billion in revenue (up 33%) and $26.8 billion in net income (up 61%). However, $8.03 billion of this profit was from a one-time tax benefit.
Key Takeaways:
- Revenue Growth: Meta’s ad impressions increased by 19% and the average price per ad rose 12%.
- Net Income: While net income reached a record $26.8 billion, $8.03 billion was due to tax benefits. Excluding this, net income was $18.7 billion.
- User Decline: For the first time, Meta’s daily active users declined by 5% sequentially to 3.56 billion. The company attributed this drop to internet disruptions from the Iran war and a WhatsApp ban in Russia.
Meta’s stock dropped 9% after hours as they raised capex guidance to $125-145 billion and announced plans to cut 8,000 jobs.