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Relevance: After three straight quarters of declines, it was the first quarter that Meta saw year-over-year revenue growth, hinting at early recovery in the ad market. The company is "becoming more efficient," said Zuckerberg, a reference to Meta's management theme for 2023. It has cut underperforming projects and initiated layoffs of more than 20,000 employees since November. What the numbers say: Meta posted $28.6B in quarterly revenue and $2.20 earnings per share, exceeding Wall Street's estimates of $27.7B and $2.02, respectively. In after-hours trading, Meta saw its stock surge, adding $8.4B to the net worth of CEO Mark Zuckerberg, according to a Forbes estimate. Still: Meta reported a $3.99B operating loss in its AR/VR/metaverse division in Q1, down from a $4.28B loss the previous quarter. While it continues to pour money into its long-term metaverse plans, Zuckerberg has emphasized a shift toward AI, saying Meta will add generative AI across WhatsApp, Messenger, Facebook, and Instagram. The technology, which includes chatbots, is "literally going to touch every single one of our products," the CEO said. |
