Zuckerberg's "Year of Efficiency" got off to a good start, Metaverse giant Meta rose more than 10% after releasing a strong quarterly report

Just as the advertising business began to recover, the Metaverse team, which Meta has bet heavily on, is still stuck in a state of "decreasing revenue and rising losses". Text|Shi Zhengcheng After the market close on Wednesday, the American social media and Metaverse giant Meta platform disclosed the first quarterly report for the 2023 fiscal year. With various data significantly exceeding expectations, the company's share price rose 11.58% after hours as of press time.

(Source: Company official website)
Let’s take a brief look at the financial report data. In the first quarter, Meta achieved a total revenue of US$28.65 billion, a year-on-year rise again after nearly a year, and a full US$1 billion higher than Wall Street analysts expected; earnings per share of US$2.2 were also 10% higher than expected. The company's second-quarter revenue forecast was $29.5 billion to $32 billion, compared with analysts' consensus estimate of $29.47 billion. In terms of business data, the average family daily activity including all software reached 3.02 billion in March this year, and the monthly activity reached 3.81 billion, both up 5% year-on-year. However, the advertising business, which is the mainstay of its revenue, continues to show the tightness of the digital advertising market. In the first quarter of this year, the number of advertising impressions of Meta family applications increased by 26% year-on-year, but the average unit price of advertising decreased by 17% year-on-year. Speaking of the recent situation of Meta, the inseparable issue is the large-scale layoffs. According to incomplete statistics, the company's overall layoffs in recent months have reached 21,000, and there is a trend of expansion in the near future. The company disclosed in today's financial report that this year's "restructuring expenses" are approximately US$3-5 billion, of which US$1.14 billion was spent in the first quarter. Meta's chief financial officer, Susan Li, also said that this year's capital expenditure will remain in the range of 30 billion to 33 billion US dollars, mainly reflecting the company's continued efforts to build products such as AI-supported advertising, as well as investment in the company's generative AI program. In February of this year, Meta released the large language model LLaMA. At the same time, there are also self-developed chip projects internally, but the overall strength is still far behind the first echelon. Zuckerberg said on Wednesday that the company's work on AI is getting very good feedback from a range of software and services. Companies are also becoming more efficient, thereby developing better products faster, ensuring the company is in a better position to secure the long-term vision. When it comes to Meta's long-term vision, we have to mention Reality Labs, the metaverse department. In the first quarter of this year, the department achieved a total revenue of 339 million U.S. dollars, roughly half of the same period last year; but the operating loss reached 3.992 billion U.S. dollars, a year-on-year increase of 30%. Meta expects that Reality Labs' overall losses will continue to grow this year. In fiscal year 2022, this department lost a total of 13.72 billion US dollars in exchange for 2.1 billion US dollars in revenue.
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Zuckerberg's "Year of Efficiency" got off to a good start, Metaverse giant Meta rose more than 10% after releasing a strong quarterly report

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