Mobile SEO

Live Blog: Meta Reports Q3 Earnings

Meta is set to report Q3 earnings today at 5:00 PM Eastern time. Highlights from the earnings report published earlier today reveal growth that beat analysts’ expectations, driven by a significant rise in advertising revenue.

Key takeaways from Meta’s Q3 2023 earnings report include:

  • Revenue of $34.1 billion, up 23% year-over-year
  • Advertising revenue grew 21%, excluding currency impact
  • Earnings per share of $4.39, far exceeding estimates
  • Net income increased 164% to $11.6 billion
  • Expenses decreased 7% compared to Q3 2022
  • Reality Labs operating loss was $3.7 billion as metaverse investment continues
  • Revised 2023 expense outlook to $87-89 billion, down from the prior $88-91 billion range. Now expects 2023 capital spending of $27-29 billion
  • Increasing legal and regulatory scrutiny cited as a headwind
  • User growth and revenue growth had slowed in recent quarters

Stay tuned as we live blog key earnings insights for digital marketing professionals.

5:02 PM ET: CEO Mark Zuckerberg says Meta had a “good quarter” overall, with three billion users across platforms.

He highlights new product launches like the Meta Quest 3 VR headset and Ray-Ban Stories smart glasses.

5:05 PM ET: Zuckerberg called out Meta’s AI work as another earnings highlight. This included Meta AI, the AI creative studio, the EMU model, early testing of a business AI platform, and plans to launch a creator-focused AI next year.

5:07 PM ET: Zuckerberg revealed Meta will de-prioritize non-AI projects and make AI the singular top priority for the company in 2024.

5:09 PM ET: Zuckerberg says Reels has increased time spent on Facebook and Instagram by over 40% since launching.

5:11 PM ET: Zuckerberg shared that AI-powered recommendations in Facebook and Instagram feeds have driven single-digit increases in time spent on each platform.

5:13 PM ET: Meta provided an update on its Threads app, saying it now approaches 100 million monthly active users. Zuckerberg said he believes Threads can reach a billion users.

5:17 PM ET: CFO Susan Li joins the call to discuss earnings, which are highlighted at the top of this post.

5:19 PM ET: Li reports daily active users on Facebook increased 5% year-over-year.

5:20 PM ET: Li highlighted how improvements to Meta’s ad targeting capabilities are leading to better campaign performance for marketers.

5:21 PM ET: Meta’s Reality Labs segment, which contains its metaverse efforts, posted a $3.7 billion operating loss last quarter.

5:25 PM ET: Meta outlined four focus areas to improve monetization on its platforms: Monetizing Reels, engaging on-platform ads, making it easier for brands to leverage their own data, and using AI advancements to drive better campaign outcomes.

5:27 PM ET: After previously sharing specific ad revenue figures for Reels, Meta announced it will no longer quantify Reels ad revenue separately.

5:29 PM ET: Li outlined Meta’s top priorities in 2024:

  • AI – Continuing major investments in artificial intelligence across all platforms and products.
  • Infrastructure – Building out AI supercomputing infrastructure and connectivity.
  • Reality Labs – Developing metaverse hardware and software.
  • Monetization – Improving ad experiences and formats to drive more revenue.
  • Regulatory Compliance – Adapting to changing regulatory environments, especially in Europe.

5:31 PM ET: Li predicts Meta’s total expenses will grow to approximately $99 billion in 2024, including further losses in VR/AR.

5:37 PM ET: During the Q&A, Zuckerberg emphasized Meta’s commitment to open-source technology. He cited benefits like increased adoption, collaboration, transparency, and accountability.

Featured Image: Dennis Diatel/Shutterstock