The company reported a substantial increase in users across all its divisions, with 3.07 billion daily active users (DAP) on average for June 2023. This figure includes the combined audience of WhatsApp, Instagram, Messenger, and Threads. Moreover, Meta’s monthly users (MAP) reached 3.88 billion, representing a 6% increase.
Facebook, as a part of Meta, saw significant growth as well, with 2.06 billion daily users (DAUs), marking a 6% increase. Additionally, Facebook’s monthly users (MAUs) reached an impressive 3.03 billion, showing a 3% increase.
On the advertising front, Meta experienced both positive and negative trends. While the number of ad impressions increased by 34%, the average ad price decreased by 16%. Nevertheless, Meta’s revenues reached $32.0 billion, indicating an 11% growth year-over-year on a constant currency basis.
However, the company also faced higher costs and expenses, amounting to $22.61 billion, up 10% from last year. This includes accrued legal expenses of $1.87 billion and restructuring charges of $780 million in the second quarter of 2023. Investment expenses, including principal payments on finance leases, totaled $6.35 billion.
Despite these expenses, Meta remains financially robust, with $53.45 billion in cash, cash equivalents, and marketable securities. The company generated a free cash flow of $10.96 billion.
On the downside, Meta’s headcount saw a decline of 14% from last year, with 71,469 employees. The layoffs in 2023 impacted the workforce, and approximately half of the laid-off employees were included in the headcount as of June 30, 2023.
The report highlighted Meta’s successful efforts in expanding its user base, especially with the growth of Facebook’s daily users by 30 million. This achievement is notable, considering the audience decrease Facebook experienced in the last quarter of 2021. Reels, a short video service similar to TikTok and YouTube Shorts, played a significant role in this growth, garnering around 200 billion plays daily.
However, Meta Reality Labs, responsible for the development of virtual and augmented reality devices, faced considerable challenges. In the reporting quarter, the division recorded an operating loss of $3.7 billion, indicating the struggles they are encountering. With losses amounting to $21.3 billion since the beginning of 2022, the division is grappling to find its footing in the competitive tech landscape.
Despite the setbacks in Meta Reality Labs, the overall financial report paints a picture of a company experiencing growth and expansion. As Meta continues to evolve and navigate the ever-changing tech industry, its focus on innovation and adaptation will be crucial in sustaining its position as a major player in the global tech arena.
