Meta Company (NASDAQ:META), the parent company of Facebook, announced robust earnings for the third quarter, driven by a surge in advertising revenue and cost savings resulting from workforce reductions. These results come on the heels of Google’s parent company, Alphabet (NASDAQ:GOOGL), reporting a rebound in earnings and revenue growth, signaling a recovery in the online advertising market after a recent slowdown.
Based in Menlo Park, California, Meta reported earnings of $11.58 billion, or $4.39 per share, for the period spanning July to September. This represents a significant increase from the previous year’s earnings of $4.4 billion, or $1.64 per share. The company’s revenue also saw substantial growth, rising by 23% to reach $34.15 billion, up from $27.71 billion.
Analysts had anticipated earnings of $3.64 per share on revenue of $33.58 billion, according to a poll conducted by FactSet. The actual results surpassed these expectations.
Jeremy Goldman, an analyst with Insider Intelligence, commented on Meta’s performance, stating, “Despite broader tech market fluctuations, Meta continues to meet expectations. With its sustained upward trajectory, robust user engagement, and strategic cost optimizations, Meta is not only navigating choppy waters but also setting the course for uncharted territories of growth.”
Despite the recent legal challenges, with 41 states and the District of Columbia suing Meta for its alleged impact on young people’s mental health, the company reported an increase in active users on Facebook. As of September 30, there were 3.05 billion active users on the platform, reflecting a 3% increase from the previous year.
Goldman noted that the lawsuit against Meta could have far-reaching implications for how social media platforms approach product features and user engagement. However, Meta’s consistent performance underscores its leadership in the digital realm.
Meta also saw an increase in monthly active users on its “family of apps,” which includes Facebook, Instagram, WhatsApp, and Messenger. As of the end of the quarter, this figure reached 3.96 billion, marking a 7% increase from the previous year. Meta does not provide quarterly user figures for apps other than Facebook.
During a conference call with analysts, Meta CEO Mark Zuckerberg highlighted the success of Threads, a Twitter-like app that launched in July and currently boasts 100 million monthly active users. Zuckerberg expressed his vision for Threads as a billion-person public conversation app with a more positive tone, provided that the app’s momentum continues over the coming years.
Total costs and expenses for Meta amounted to $20.4 billion, down by 7% year-over-year. The company’s workforce also decreased by 24%, with 66,185 employees as of September 30.
Looking ahead, Meta forecasts revenue in the range of $36.5 billion to $40 billion for the current quarter, while analysts are expecting approximately $38.84 billion. Despite the strong performance, shares in Meta Platforms Inc. experienced a 3% drop in after-hours trading following the earnings announcement. The stock had closed down 4.2% earlier, at $299.53.
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Author Faith Yakubu 
