Business News Report
April 27, 2023

Meta’s Strong Q1 Results Bolster Metaverse Commitment

In Brief

Meta reported its Q1 2023 results, with revenue of $28.65 billion, an increase of 3% YoY.

The revenue increased unexpectedly after experiencing three consecutive periods of decline.

The company’s daily active users (DAUs) and monthly active users (MAUs) increased YoY by 4% and 2%, respectively.

Meta’s Reality Labs unit generated $339 million in sales but suffered an operating loss of $3.99 billion, with further losses expected in 2023.

Meta Q1 Results Bolster Metaverse Commitment

Meta has announced financial results for the first quarter of 2023. Despite recent restructuring efforts that have led to over 11,000 job cuts, the company surprised investors with an unexpected increase in sales for the first quarter. Following the news, Meta shares surged 12% on Wednesday. 

The most recent quarter marks the first time in almost a year that the company has reported a year-over-year revenue increase, exceeding expectations.

  • Family daily active people (DAP) increased by 5% YoY to 3.02 billion on average for March 2023.
  • Facebook daily active users (DAUs) increased by 4% YoY to 2.04 billion on average for March 2023.
  • Monthly Active Users (MAUs): an increase of 2% YoY to 2.99 billion.
  • Ad impressions across their Family of Apps increased by 26% YoY.
  • Revenue was $28.65 billion, a 3% YoY increase and a 6% YoY increase on a constant currency basis.
  • Meta incurred pre-tax restructuring charges of $621 million in Q1 2023 related to layoffs and facility consolidation.

There was an improvement in most of the cash flows from operating activities during the first quarter of 2023 compared to the same period in 2022.

The company’s metaverse division, Reality Labs, generated $339 million in revenue but incurred an operating loss of almost $4 billion. In the entire 2022, it lost $13.7 billion. Meta further stated that it expects operating losses in Reality Labs to increase in the current year.

Meta announced that its estimated capital expenditures for 2023 would remain unchanged from its prior estimate at $30-33 billion. The company stated that this outlook is due to its continued investment in AI capacity for supporting ads, Feed, and Reels, as well as its increased investment in capacity for generative AI initiatives.

“We had a good quarter and our community continues to grow. Our AI work is driving good results across our apps and business. We’re also becoming more efficient so we can build better products faster and put ourselves in a stronger position to deliver our long term vision,”

Zuckerberg said.

Read more:

Tags:

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on [email protected].

More articles
Agne Cimerman
Agne Cimerman

Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on [email protected].

Hot Stories
Join Our Newsletter.
Latest News

The Calm Before The Solana Storm: What Charts, Whales, And On-Chain Signals Are Saying Now

Solana has demonstrated strong performance, driven by increasing adoption, institutional interest, and key partnerships, while facing potential ...

Know More

Crypto In April 2025: Key Trends, Shifts, And What Comes Next

In April 2025, the crypto space focused on strengthening core infrastructure, with Ethereum preparing for the Pectra ...

Know More
Read More
Read more
Web3 On-Chain Data Insights: In April, Solana Tops Activity, Ethereum Sees Capital Inflows, Bitcoin Shows Structural Rebound
News Report Technology
Web3 On-Chain Data Insights: In April, Solana Tops Activity, Ethereum Sees Capital Inflows, Bitcoin Shows Structural Rebound
May 9, 2025
Exploring AI Revolution In Web3: Decentralized AI, Data Ownership, And The Road Ahead
Hack Seasons News Report Technology
Exploring AI Revolution In Web3: Decentralized AI, Data Ownership, And The Road Ahead
May 9, 2025
The Future Of AI Agents: Innovation, Challenges, And Opportunities
Hack Seasons News Report Technology
The Future Of AI Agents: Innovation, Challenges, And Opportunities
May 9, 2025
Adidas, Binance, And Coinbase: Major Crypto Partnerships Of May 2025
News Report Technology
Adidas, Binance, And Coinbase: Major Crypto Partnerships Of May 2025
May 9, 2025