Meta CEO Mark Zuckerberg highlighted that the company’s app continued to record strong engagement and currently has an exciting product in the pipeline.
Meta Platforms Inc (NASDAQ: META) shares closed Wednesday trading at $298.57, up 1.39 percent from the day’s opening price. However, the gains in the Meta stock price spiked by approximately 6.84 percent during the after-hours trading session after the American tech giant announced its Q2 2023 earnings that beat analysts’ expectations. As a result, Meta shares are up approximately 148 percent YTD fueled by its future growth prospects amid its significant investments in Artificial Intelligence (AI) products among others.
“We had a good quarter. We continue to see strong engagement across our apps and we have the most exciting roadmap I’ve seen in a while with Llama 2, Threads, Reels, new AI products in the pipeline, and the launch of Quest 3 this fall,” Zuckerberg noted.
Meta Q2 2023 Financial Highlights
According to the announcement, Meta reported revenue of $32 billion in three months ending June 30, whereas analysts surveyed by Refinitiv expected $31.12 billion. The company’s revenue increased about 11 percent YoY. As a result, the tech giant announced its earnings per share for the quarter was about $2.98 versus the $2.91 expected by analysts surveyed by Refinitiv. For Q2 2023, Meta announced it managed to repurchase 793 million class A common stocks. Moreover, the company had $40.91 billion to facilitate its share repurchase program.
Notably, the company closed the second quarter with a free cash flow of about $10.96 billion and a long-term debt of about $18.38. As of June 30, Meta announced it had a headcount of 71,469, which represented a decline of about 14 percent YoY.
In terms of active users, Meta’s family daily active people (DAP) came in at about 3.07 billion on average during the second quarter. Additionally, the company noted that its family monthly active people (MAP) was about 3.88 billion. Reportedly, Facebook announced its daily active users (DAUs) for the second quarter came in at about 2.06 billion, whereas its monthly active users (MAUs) came in at about 3.03 billion.
Notably, the company announced that its ad impressions delivered across its family of applications increased by 34 percent YoY, whereas its average price per ad decreased by 16 percent YoY.
During the third quarter, the company anticipates its revenue to be in the range of between $32 billion and $34.5 billion. The company noted that the exponential growth in AI and the metaverse industry has significantly scaled its prospects. However, the company announced that it is closely monitoring the regulatory landscape in regard to the EU-US data transfer.
“We continue to see increasing legal and regulatory headwinds in the EU and the US that could significantly impact our business and our financial results,” the company noted.