Meta's Q2 2023 Sees 3.03 Billion Monthly Active Users on Facebook, Registers Robust Surge in Advertising Revenue

Meta, the parent company of Facebook, exceeded market expectations for its quarterly earnings, driven by a rebounding digital ad business. The company reported a profit of $7.8 billion on revenue of $32 billion during the last quarter, with the monthly active users on Facebook reaching 3.03 billion.

Mark Zuckerberg, the CEO of Meta, expressed satisfaction with the company's performance during an earnings call, highlighting strong engagement across their apps and an exciting roadmap ahead.

Meta faced challenges in 2022 due to an economic downturn, leading to reduced advertising spending, and Apple's privacy changes impacting ad targeting. However, like other major US tech companies, Meta experienced significant growth in its share price in 2023, which Zuckerberg previously referred to as the "year of efficiency."

Analysts noted increased interest from advertisers in Reels, a video format similar to TikTok, and a more positive economic environment that encouraged marketing spending.

Despite initial skepticism about its metaverse ambitions, Meta remains committed to virtual reality and AI. The company saw progress in monetizing Reels, with over 200 billion daily plays on Facebook and Instagram. Nonetheless, the shift towards the metaverse has been slower than expected.

Meta implemented cost-cutting measures and reduced its workforce by 14 percent since November, signaling its commitment to financial discipline.

The company also released Threads, a text-only app that gained over 100 million downloads in a short time, though long-term user retention remains uncertain.

Regarding AI, Meta has taken an open-source approach, making its Llama generative AI technology available for researchers and companies to adapt to their specific needs. Zuckerberg mentioned the company's efforts in developing an AI platform to facilitate collaboration between creators and advertisers.

Despite challenges, Meta's outlook remains positive, and investors are eager to see how the company further incorporates generative AI into its products. Zuckerberg is confident that the metaverse and AI are integral parts of Meta's future strategy.