Meta reports surprisingly strong quarter one earnings after restructuring hiccups
Meta revenue surpassed analyst expectations in its first quarter of the year, marking an unexpectedly positive earnings report as the company faces ongoing economic headwinds and rising competition.
The company reported a first-quarter revenue of $28.10bn, beating expectations of $27.66bn and up 3% year-over-year. Shares were up 9% in after hours trading, as the results boosted investor confidence in a company that has been struggling in its attempts to successfully restructure its business model.
Meta, which owns Instagram, Facebook and WhatsApp, has in recent years attempted to pivot away from social media to the metaverse – its virtual reality program. But the road has been rocky, with the company losing billions as attempts by Mark Zuckerberg and other executives to calm increasingly worried investors.
Meta now appears to be shifting to focus more strongly on artificial intelligence, following a trend in the industry as the massive success of Microsoft-owned tool ChatGPT launched a new boom in the technology.
“We had a good quarter and our community continues to grow,” said Zuckerberg, Meta founder and chief executive officer, in a statement accompanying the results. “Our AI work is driving good results across our apps and business. We’re also becoming more efficient so we can build better products faster and put ourselves in a stronger position to deliver our long term vision.”
Despite the revenue beat, Meta’s net income company-wide was down 24% year-over-year, from $7.47bn to $5.71bn.In addition to its metaverse challenges, the company has battled a broader slump in advertising spending due to a weakening economy and a shift of consumer behavior, as easing Covid-19 restrictions led to less time online. While its
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