Meta's Q2 results beats estimates; ad revenue increases by 32% year-on-year

Meta's Q2 earnings beat estimates to reach $32 billion against the estimates of $31.06 billion. The company also reported a revenue of $32 billion-$34.5 billion for the current quarter, more than the $31.2 billion expected by analysts.

Meta's ad revenue also beat estimates, to reach $31.5 billion, more than the $30.43 billion that was expected by experts. As per the company, Meta's ad impressions jumped 34% year-over-year, as the price per ad went down by 16% in that same period.

"We had a good quarter. We continue to see strong engagement across our apps and we have the most exciting roadmap I've seen in a while with Llama 2, Threads, Reels, new AI products in the pipeline, and the launch of Quest 3 this fall," says Mark Zuckerberg, Meta founder and CEO.

The company that has recently been on a layoff spree says that they have "completed planned employee layoffs while continuing to assess facilities consolidation and data center restructuring initiatives."

Meta CFO Susan Li says, the company's losses may increase as they continue to invest towards VR. "We expect third quarter 2023 total revenue to be in the range of $32-34.5 billion. Our guidance assumes a foreign currency tailwind of approximately 3% to year-over-year total revenue growth in the third quarter, based on current exchange rates. We anticipate our full-year 2023 total expenses will be in the range of $88-91 billion, increased from our prior range of $86-90 billion due to legal-related expenses recorded in the second quarter of 2023. This outlook includes approximately $4 billion of restructuring costs related to facilities consolidation charges and severance and other personnel costs. We expect Reality Labs operating losses to increase year-over-year in 2023."

The company has reported 2.06 billion daily active users and Facebook monthly active users were 3.03 billion as of June 30, 2023, an increase of 3% year-over-year.