Meta has reported its first-quarter earnings for 2023, posting a 3% year-over-year increase in revenue to $28.65 billion. Meta founder and CEO Mark Zuckerberg said that the company had a good quarter and that its community continues to grow. He added that AI is driving good results across Meta’s apps and business.
However, the company’s net income for the quarter decreased by 24% year-over-year to $5.7 billion, while its diluted earnings per share fell by 19% to $2.20. Meanwhile, the company’s costs and expenses rose by 10% to $21.4 billion.
Meta’s family daily active people (DAP) and monthly active people (MAP) both increased by 5% year-over-year, reaching 3.02 billion and 3.81 billion respectively. Facebook daily active users (DAUs) increased by 4% year-over-year to 2.04 billion, while monthly active users (MAUs) reached 2.99 billion, a 2% year-over-year increase.
In the first quarter of 2023, ad impressions delivered across Meta’s Family of Apps increased by 26% year-over-year, while the average price per ad decreased by 17% year-over-year.
Meta incurred pre-tax restructuring charges of $621 million in the first quarter of 2023. In March 2023, the company announced three rounds of planned layoffs, with the goal of reducing its company size by approximately 10,000 employees across its Family of Apps and Reality Labs segments. The layoffs are expected to result in total pre-tax severance and related personnel costs of approximately $1 billion.
Meta has also been pursuing greater efficiency and realigning its business and strategic priorities, resulting in $1.14 billion in charges related to its restructuring efforts in the first quarter of 2023. As of March 31, 2023, the company had repurchased $9.22 billion of its Class A common stock and had $41.73 billion available and authorized for repurchases.
Despite the decrease in net income and earnings per share, Meta’s revenue growth and user base growth are positive signs for the company. However, the costs and expenses increase and the planned layoffs may raise some concerns among investors.
