Meta Platforms had an 11% increase in revenue to $32 billion in the second quarter after exceeding market estimates. In terms of revenue, analysts had predicted $31.12 billion. The company forecasts a positive third-quarter revenue that will surpass market forecasts.
The company’s rising ad revenues are what drive its revenues. After the publication of the quarterly results, Meta shares were flying high and rose 4% on Wednesday during after-hours trading. In comparison to analysts’ average expectation of $31.30 billion, the business anticipates sales from July through September in the range of $32 billion to $34.5 billion.
The social media behemoth, fueled by excitement surrounding cutting-edge artificial intelligence technology and an ambitious austerity drive in which it has laid off some 21,000 staff since last autumn, is still recovering from a painful 2022 crunch. The company’s shares have more than doubled in value this year as a result of the development in AI.
Additionally, after months of reduced expenditure, advertisers are now supporting those gains by investing more money in digital ads. Brands are putting their bets as the situation improves, but they are only doing so on reliable platforms like Meta and Alphabet.
The revenue increases offer comfort as Meta continues to invest more than $10 billion annually on a longer-term bet on metaverse hardware and software, while also making significant investments to improve its infrastructure and stay competitive in a developing arms race surrounding AI technology.
According to the business, legal-related expenses will cost between $88 billion and $99 billion in 2023. Additionally, the business may have to deal with higher infrastructure-related costs in 2024 in addition to an increase in payroll costs.