Meta Doubled Profits in September Quarter as Turnaround Effort Continues

In a remarkable display of resilience, Meta, the parent company of Facebook, has once again exceeded expectations in its latest earnings report for the third quarter ending in September. The company’s “year of efficiency” turnaround strategy seems to be working wonders, with significant growth in revenue and profits.

The Numbers Speak Volumes

Meta’s quarterly revenue for the year-over-year comparison surged by 23%, surpassing $34 billion, outstripping the $33.5 billion projected by analysts. Furthermore, Meta reported net income of nearly $11.6 billion, more than double the profit from the previous year. This remarkable financial performance reflects the success of Meta’s restructuring efforts.

A Positive Market Response

Investors and Wall Street welcomed this news with enthusiasm. Meta (META) shares surged by as much as 4% in after-hours trading following the earnings report. Notably, the stock had already gained 140% year-to-date by the close of business on that Wednesday.

Expert Opinion

Jesse Cohen, a senior analyst at, commented, “All in all, it was a blowout quarter with Meta reporting its most profitable quarter in years.” This positive assessment underscores the significance of Meta’s financial achievements.

The “Year of Efficiency” Strategy

Mark Zuckerberg, Meta’s CEO, unveiled the company’s “year of efficiency” strategy in February. This initiative was a response to a challenging year marked by revenue declines, caused by factors such as Apple’s app privacy changes and reduced digital ad spending amid macroeconomic uncertainty. Additionally, the rise of competitors like TikTok added to the hurdles.

Strong User Growth

One of the key indicators of success is user growth. Meta reported robust user growth for both its family of apps and its core Facebook platform. Facebook’s monthly active users increased by 3% year-over-year, surpassing 3 billion. This is a significant improvement compared to a 2% growth rate in the year-ago quarter.

Revitalized Advertising Business

Meta’s core advertising business also exhibited promising signs. Ad impressions across all of Meta’s apps grew by 31% year-over-year in the September quarter. Despite this growth, the average price per ad decreased by 6% year-over-year, though at a slower rate than the prior year.

Advanced Ad Targeting

Meta has been focusing on improving its ad targeting technology using artificial intelligence, which enhances advertisers’ return on investment. Additionally, the company is working on better monetizing its popular Reels feature on Instagram.

Advertisers Return

With macroeconomic conditions stabilizing, advertisers are returning to higher spending. Meta is benefiting from this trend as advertisers choose to allocate their budgets to platforms like Facebook and Instagram, considered market leaders in the social media space.

Global Factors and Advertising

It’s worth noting that events with global implications can impact advertising trends. For instance, during the Israel-Hamas conflict, some advertisers temporarily paused their spending. While Meta observed softer ad spending in the early part of the fourth quarter, it’s challenging to attribute this solely to geopolitical events.

Investment in the Metaverse

Meta has been making substantial investments in its Reality Labs unit, which is central to its metaverse endeavors. Although the unit reported a loss of more than $3.7 billion in the September quarter, the company is committed to its metaverse vision. This includes increased expenses in 2023 and 2024.

A Promising Future

Meta’s outstanding performance in the September quarter demonstrates the success of its “year of efficiency” strategy. Robust user growth, improved advertising business, and investments in the metaverse bode well for the company’s future. As it continues to adapt and innovate, Meta is positioned to maintain its position as a digital advertising leader.

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