In the third quarter of 2023, Meta reported a 23% increase in total revenue compared to the previous year, reaching $34,146 million. Net profit also saw an increase, amounting to $11,583 million. The primary factors contributing to the rise in revenue were the high growth in advertising business revenue, which reached a record-breaking $33,643 million, reflecting a 24% increase from the previous quarter, and a 7% decrease in expenses due to a significant workforce reduction.
Furthermore, the number of monthly active users (MAUs) on the Facebook platform increased by 3,049 million accounts, while the overall MAUs for all apps within the Meta family reached a staggering 3.96 billion people.
Additional noteworthy information from the earnings report includes CEO Mark Zuckerberg’s statement that the average time spent on Facebook increased by 7% and on Instagram by 6%, thanks to the post recommendation system. Artificial intelligence (AI) is expected to be a major investment focus for Meta in 2024.
Chief Financial Officer Susan Li mentioned that the increased advertising revenue can be attributed primarily to customers in the online retail sector. On the other hand, the Reality Labs or Metaverse business group recorded a revenue decrease of 26%, generating a loss of $3,742 million from a total revenue of $210 million.
Meta has acknowledged that the increased loss in the Reality Labs business is a part of their ongoing investment strategy, reflecting the company’s commitment to further expand in this area.
Additionally, the messaging app Threads experienced nearly 100 million monthly active users (MAUs).
In summary, Meta’s Q3 2023 earnings report reveals significant increases in overall revenue, driven by robust growth in advertising business revenue. The company’s focus on AI as a key investment, alongside the acknowledgment of continued investments in the Reality Labs division, reinforces their commitment to innovation and strategic expansion.
TLDR: Meta’s Q3 2023 report showcases a 23% revenue growth, reaching $34,146 million, driven by a substantial increase in advertising business revenue. The company’s focus on AI for future investments and their ongoing commitment to the Reality Labs unit are notable highlights. The report also highlights the increase in monthly active users on various platforms, underscoring Meta’s continued prominence in the digital landscape.