Meta Platforms, the parent company of Instagram, Facebook, WhatsApp among others, has reported an year-on-year (YoY) increase of 4.09% in its revenue coming from advertising in Q1 FY23 as it clocked in $28,101 million, juxtaposed to $26,998 million in the corresponding quarter of the previous year.
Additionally, the company’s revenue also stood at $28,645 million in Q1 of FY23, marking a 3% increase from the corresponding quarter of the previous fiscal year wherein it had clocked $27,908 million.
This is followed by a 26% YoY increase in the ad impressions delivered across Meta’s Family of Apps. However, the average price per ad took a dip of 17% YoY during the same time period.
As per Meta’s quarterly update for quarter ended March 31, 2023, the Family Daily Active People and Monthly Active People, both, saw an increase of 5% on a YoY basis and stood at 3.02 billion (on average) and MAP at 3.81 billion, respectively.
Similarly, Facebook’s Daily Active Users also increased by 4% YoY to 2.04 billion and Monthly Active Users went up by 2% to reach 2.99 billion.
It is also to be noted that Meta’s total expenditure, including all costs and expenses along with charges related to its restructuring efforts ($1.14 billion), stands at $21.42 billion for Q1 FY23. This is inclusive of Meta’s Marketing and Sales expenses, the tech giant spent $3,044 million in Q1 FY23, down 8.09% YoY from $3,312 million it spent in the corresponding quarter of the previous year.
Meta also mentioned that its headcount has decreased by 1% YoY, as of March 31, 2023, and that all employees that would be impacted by the 2023 layoffs are already included in the reported headcount which stood at 77,114.
“In 2022, we initiated several measures to pursue greater efficiency and to realign our business and strategic priorities. As of March 31, 2023, we have substantially completed the 2022 employee layoffs while continuing to assess facilities consolidation and data center restructuring initiatives. We incurred additional pre-tax restructuring charges of $621 million in the first quarter of 2023,” it mentioned.
Furthermore, it also added that in connection to the three rounds of planned layoffs aimed at reducing the company size by approximately 10,000 employees across the Family of Apps (FoA) and Reality Labs (RL) segments, the company expects to incur total pre-tax severance and related personnel costs of approximately $1 billion, of which $523 million was recognised during the first quarter of 2023 and the remaining charges will be substantially recorded by the end of 2023.
Mark Zuckerberg, Founder and CEO, Meta, said, “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,” he added.
Meta’s CFO, Susan Li, in the quarterly update, mentioned, “We expect second quarter 2023 total revenue to be in the range of $29.5-32 billion. Our guidance assumes foreign currency headwinds will be less than 1% to year-over-year total revenue growth in the second quarter, based on current exchange rates. We anticipate our full-year 2023 total expenses will be in the range of $86-90 billion, updated from our prior outlook provided in March. This outlook includes $3-5 billion of restructuring costs related to facilities consolidation charges and severance and other personnel costs.”
“We continue to expect Reality Labs operating losses to increase year-over-year in 2023. We expect capital expenditures to be in the range of $30-33 billion, unchanged from our prior estimate. This outlook reflects our ongoing build out of AI capacity to support ads, Feed and Reels, along with an increased investment in capacity for our generative AI initiatives,” she added.