Facebook’s Meta logo sign is seen at the company headquarters in Menlo Park, Calif. (AP Photo/Tony Avelar, File)
Meta Platforms, the parent company of Facebook, exceeded expectations with its second-quarter results. The company experienced a rebound in online advertising following a downturn caused by the pandemic.
In the April-June period, the company earned $7.79 billion, or $2.98 per share, representing a 16 percent increase compared to the same period last year when it earned $6.69 billion, or $2.46 per share.
The revenue for the quarter also saw a significant increase, rising 11 percent to $32 billion from $28.82 billion in the previous year. This marks the first time the company has achieved double-digit revenue growth since 2021.
Analysts had expected earnings of $2.91 per share on revenue of $31.08 billion, according to a poll by FactSet Research.
As of June 30, Facebook had 3.03 billion monthly active users, a 3 percent increase from the previous year.
Meta has faced challenges due to a decline in online advertising and economic uncertainty, resulting in the company cutting over 20,000 jobs since November. As of June 30, the company had 71,469 employees, a 14 percent decrease from the previous year.
Read: Facebook owner Meta slashes business teams in final round of layoffs
Several other tech companies, including Google parent Alphabet and Amazon, have also implemented significant job cuts.
“There’s a lot to feel good about when it comes to Meta right now. It has been able to maintain decent growth in monthly and daily active users across both Facebook and its family of apps, and it has seen strong performance from Advantage, its AI-driven suite of ad automation tools,” said Debra Aho Williamson, an analyst with Insider Intelligence.
For the current quarter, Meta is forecasting revenue of $32 billion to $34.5 billion, surpassing analysts’ expectations of $31.22 billion.
Read: Google rebounds from unprecedented drop in ad revenue
Meta’s positive results follow a strong earnings report from Alphabet a day earlier.
In response to the results, Meta’s stock price rose by 4.8 percent to $313.02 in after-hours trading.
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Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
