Meta Outpaces Wall Street Expectations with Stellar Quarterly Results

Meta, the tech juggernaut previously known as the Facebook parent company, once again proved its business mettle on Wednesday by outshining Wall Street’s forecasts.

by Faruk Imamovic
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Meta Outpaces Wall Street Expectations with Stellar Quarterly Results
© Getty Images Entertainment/Kelly Sullivan

Meta, the tech juggernaut previously known as the Facebook parent company, once again proved its business mettle on Wednesday by outshining Wall Street’s forecasts. The latest quarterly earnings report serves as a testament to the company's "year of efficiency" strategy, which has borne significant fruit after a challenging 2022.

Substantial Revenue Gains and Profitability

Meta showcased a robust financial health by announcing a 23% year-over-year increase in quarterly revenue, amounting to over $34 billion. This surpassed analyst projections, which had pinned the figure at around $33.5 billion.

Even more impressive was Meta’s profit margin, which soared to a remarkable $11.6 billion, more than double its profit from the same period the previous year. To put this into perspective, Meta's profits had halved during that time.

Following this announcement, Meta shares experienced a bullish trend, climbing as much as 4% during after-hours trading on Wednesday. This builds on an already impressive year for the tech giant, with its stock witnessing a 140% surge up to Wednesday’s close.

Reflecting on these outstanding figures, Jesse Cohen, the senior analyst at Investing.com, remarked, “All in all, it was a blowout quarter with Meta reporting its most profitable quarter in years”.

User Growth and Ad Business Flourishing

Another promising takeaway from Wednesday's report was Meta's user engagement.

The core Facebook platform reported a 3% year-over-year growth in monthly active users, now surpassing the 3 billion mark. This growth is notably more accelerated than the previous year's rate of 2%. In addition to the expanding user base, Meta’s advertising domain also witnessed encouraging signs.

There was a 31% year-over-year spike in ad impressions across all of Meta's apps in the September quarter. Although the company noted a 6% year-over-year dip in the average price per ad, this decline is relatively modest, especially when contrasted with the 18% drop during the same time the prior year.

Lending further weight to the positive trend in Meta’s ad business, Cohen added, “Meta’s solid quarter adds further evidence to the view that advertisers are choosing to spend their budget on the so-called market leaders, such as Facebook and Instagram, at the expense of the smaller social media networks”.

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