Despite the challenges posed by the pandemic and higher interest rates, Meta has reported a significant increase in its Q3 revenue. The company, led by Mark Zuckerberg, revealed a 23% boost in its revenue, reaching $34.15 billion and surpassing Wall Street's estimate of $33.6 billion. This growth was primarily driven by a resurgence in digital advertising, a trend also observed in other tech giants such as Google (NASDAQ:GOOGL) and Snap.
In addition to the revenue increase, Meta also reported a significant rise in profit. The company's profit for the quarter stood at $11.6 billion, more than double the previous year's $4.4 billion. This remarkable growth can be attributed to cost-cutting initiatives that led to a 7% reduction in expenses to $20.4 billion year-on-year.
The company has also demonstrated resilience by implementing a significant workforce reduction and restructuring its organizational setup. Despite the turbulence in the tech sector, Meta managed to maintain user growth in major markets such as the US and Canada. The company recorded a 7% increase in daily users of its apps, including Facebook (NASDAQ:META), Instagram, WhatsApp, and Messenger, bringing the total to 3.14 billion.
Looking ahead, Meta provided an optimistic outlook for Q4 with a revenue forecast of between $36.5 billion and $40 billion. Moreover, it expects lower expenses next year than previously projected—$87 billion to $89 billion instead of $88 billion to $91 billion.
However, not all news was positive for Meta. The company anticipates an increase in losses from its Reality Labs division, which is responsible for developing metaverse-related products. While these figures are not yet confirmed, it's clear that the company's venture into the metaverse will have financial implications that will need to be carefully managed.
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