{"id":2080424,"date":"2023-10-26T16:21:00","date_gmt":"2023-10-26T20:21:00","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/meta-beats-third-quarter-earnings-estimates-prioritizes-ai-investments\/"},"modified":"2023-10-26T16:24:15","modified_gmt":"2023-10-26T20:24:15","slug":"meta-beats-third-quarter-earnings-estimates-prioritizes-ai-investments","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/meta-beats-third-quarter-earnings-estimates-prioritizes-ai-investments\/","title":{"rendered":"Meta surpasses Q3 earnings estimates, focuses on AI investments."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fmeta-beats-third-quarter-earnings-estimates-prioritizes-ai-investments%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2080424&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<p>The <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/elon-musk-to-temporarily-serve-as-twitter-ceo-after-deal-closes\/\" title=\"Elon Musk to Temporarily Serve as Twitter CEO After Deal Closes\">latest earnings report<\/a> from Meta Platforms has revealed a remarkable 23 percent \u2062increase in revenue for the third quarter. This impressive growth can be attributed to the company&#8217;s \u200bcost-reduction \u200befforts and \u200da resurgence\u2062 in digital advertising revenues.<\/p>\n<p>During the quarter ended Sept. \u206230, Meta&#8217;s parent company, Facebook, generated $34.146 billion in revenue, marking a\u200c significant 23.21 percent increase compared\u200c to\u200c the same period\u2064 last \u200dyear.<\/p>\n<p>Net income also saw a substantial rise of 164\u2062 percent, reaching $11.58 billion, resulting \u200bin adjusted\u200b earnings of $4.39 per share.<\/p>\n<div class=\"shortcode\">\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\" id=\"in_article_related_stories\">\n<h2 class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related Stories<\/h2>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-4 sm:line-clamp-3\">\n            <a href=\"http:\/\/www.theepochtimes.com\/us\/california-leads-group-of-33-attorneys-general-in-lawsuit-against-meta-5517185?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3 class=\"text-sm sm:text-base\">California\u200c Leads Group of 33 Attorneys \u200dGeneral in Lawsuit Against \u200bMeta<\/h3>\n<p>            <\/a>\n          <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">10\/26\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[70px] sm:basis-[120px]\">\n          <a href=\"http:\/\/www.theepochtimes.com\/us\/california-leads-group-of-33-attorneys-general-in-lawsuit-against-meta-5517185?ea_src=author_manual&#038;ea_med=related_stories\">\n            <picture><source type=\"image\/webp\" https:><\/source><source type=\"image\/jpeg\" https:><\/source>\n            <\/picture>\n          <\/a>\n        <\/div>\n<\/p><\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-4 sm:line-clamp-3\">\n            <a href=\"http:\/\/www.theepochtimes.com\/epochtv\/meta-knows-all-of-this-states-announce-lawsuits-against-meta-for-knowingly-targeting-children-with-addictive-features-5516091?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3 class=\"text-sm sm:text-base\">\u2018Meta Knows\u2063 All \u200cof This\u2019: States Announce Lawsuits \u2064Against\u200b Meta\u2063 for \u2018Knowingly\u2019 Targeting Children With Addictive Features<\/h3>\n<p>            <\/a>\n          <\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">10\/24\/2023<\/div>\n<\/p><\/div>\n<div class=\"shrink-0 basis-[70px] sm:basis-[120px]\">\n          <a href=\"http:\/\/www.theepochtimes.com\/epochtv\/meta-knows-all-of-this-states-announce-lawsuits-against-meta-for-knowingly-targeting-children-with-addictive-features-5516091?ea_src=author_manual&#038;ea_med=related_stories\">\n            <picture><source type=\"image\/webp\" https:><\/source><source type=\"image\/jpeg\" https:><\/source>\n            <\/picture>\n          <\/a>\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>Meta exceeded expectations \u2062in ad \u200dimpressions,\u200d achieving a \u2064remarkable 31 \u200cpercent year-over-year increase, \u2063surpassing the anticipated 29.6 percent.<\/p>\n<p>The company&#8217;s income from\u2062 operations also experienced\u200c significant growth, rising by \u2063142.73 \u2062percent compared \u2062to the previous year, reaching $13,748 million for the quarter.<\/p>\n<p>These\u200c impressive results indicate a 168 percent year-over-year earnings surge and a 23 percent spike in sales for Meta.<\/p>\n<div class=\"shortcode post-related-videos\">\n<div class=\"lazyload-wrapper\">\n<div class=\"lazyload-placeholder\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>Meta&#8217;s stock has been on\u2064 a remarkable upward trajectory, \u2062soaring nearly 150 \u2063percent this \u200dyear, making it one of the top performers in the S&#038;P 500 Index.<\/p>\n<div class=\"my-5\">\n<blockquote>\n<p>&#8220;We had a good quarter for our community and business,&#8221; said Mark Zuckerberg, Meta founder\u2064 and CEO. &#8220;I&#8217;m\u2063 proud of the work our teams have done to advance AI and mixed reality with the launch\u200d of Quest 3, Ray-Ban Meta smart\u2062 glasses, and our AI studio.&#8221;<\/p>\n<\/blockquote>\n<h2>Metaverse Suffers Losses With Reality Labs<\/h2>\n<p>Meta&#8217;s \u2064Reality\u200c Labs division,\u2062 however, continues to face financial challenges.<\/p>\n<\/p><\/div>\n<p>In the third quarter, the \u2064division incurred a loss of\u200b $3.75 billion, \u200dcompared to $3.67 billion in the\u200d previous year. Additionally, \u2063the \u200cmetaverse-oriented division\u2064 experienced a \u206326 percent \u2063decline in \u200crevenue, totaling $210 million.<\/p>\n<div class=\"my-5\">\n<p>In \u2063October, Meta unveiled its latest virtual-reality \u2063headset, \u200cthe Quest 3, which\u2064 is available in two versions: one with 128GB \u2064storage \u200dfor\u200b $499.99, and\u2063 another\u2062 with \u2063512GB storage for\u2063 $649.99.<\/p>\n<p data-pm-slice=\"1 1 []\">Regarding the platform Threads, Mr. Zuckerberg expressed \u2064his satisfaction, stating\u2064 &#8220;people love it so far&#8221; and expressing hope that the network\u200b would eventually reach one billion users.<\/p>\n<p class=\"paywall-full-content invisible no-summary-bullets\">&#8220;We&#8217;re three months in \u200dnow, and I&#8217;m very happy with the trajectory,&#8221; said the Meta CEO during an investor call. &#8220;There are just under 100 \u200bmillion monthly actives \u200dat this point. And\u200b we&#8217;re now getting\u2062 to the point where we&#8217;re going to be focusing\u2064 on growing the\u2062 community further.&#8221;<\/p>\n<\/p><\/div>\n<div class=\"my-5\">\n<h2>Meta Widens \u200bRevenue Guidance Range<\/h2>\n<p>Looking ahead to the \u200bnext quarter, Meta is \u200cplanning to expand \u2062its\u2062 revenue\u2062 guidance range.<\/p>\n<\/p><\/div>\n<p>The new range, projected to be between $36.5 \u200cbillion and $40 billion, exceeds the\u200d company&#8217;s usual guidance of $2.5 billion.<\/p>\n<p>Meta&#8217;s CFO, Susan Li, attributed this \u200dadjustment to\u2063 macroeconomic factors, \u2064such as the ongoing conflict in the Middle East, impacting the company&#8217;s advertising performance.<\/p>\n<p>&#8220;Now in \u2063terms \u2062of how this\u200c translates \u2063into impact \u200bon the fourth-quarter business, \u2063first of all, I should \u200bsay that\u200b coming into the fourth quarter, we&#8217;ve been seeing\u2064 continued strong\u200b advertiser demand in key segments, including online commerce \u2064and gaming,&#8221; explained \u2063Ms. Li during an investor \u200dcall.<\/p>\n<p>&#8220;But \u200dhaving said that, we are also seeing more volatility at\u200c the \u200cstart of the quarter. That&#8217;s in part why\u2062 we widened our guidance \u200brange to capture\u200d that uncertainty.&#8221;<\/p>\n<div class=\"my-5\">\n<p>Ms. Li clarified that Meta does not have any &#8220;direct material exposure to Israel,&#8221; but the company has historically witnessed a decrease in demand during other regional conflicts, such as when\u200b Russia \u200cinvaded \u200bUkraine in 2022.<\/p>\n<h2>AI Will Be Meta\u2019s Biggest \u200bInvestment<\/h2>\n<p>Regarding investment priorities, Mr. Zuckerberg emphasized that AI will be\u200d Meta&#8217;s primary focus in \u20622024, encompassing both\u2063 engineering and \u200bcompute\u200d resources.<\/p>\n<\/p><\/div>\n<p>&#8220;This\u200b year alone, \u200cwe&#8217;ve seen a \u200c7 percent increase in time spent on Facebook \u2063and a 6 percent increase on Instagram as a \u2063result of recommendation\u200c improvements,&#8221; he highlighted.<\/p>\n<p>&#8220;Our AI tools for advertisers\u200b are also \u2064driving\u200d results with\u2062 Advantage+ shopping campaigns,\u200b reaching a $10 billion \u200brun rate and\u200d more than half of our advertisers \u2062using our Advantage+ creative tools\u2064 to optimize images and text in their ads creative.&#8221;<\/p>\n<p>He further stated that Meta intends to continue downgrading various non-AI projects within the organization, prioritizing the \u2063engagement of personnel in AI-related initiatives instead.<\/p>\n<p>In 2022, Meta initiated a\u2062 comprehensive\u2062 restructuring\u2062 process, which \u2064involved downsizing the workforce \u200dand streamlining projects, \u200ball aimed at enhancing the \u2064company&#8217;s AI-driven algorithms and delivering\u2063 more accurate and personalized \u2063recommendations.<\/p>\n<\/div>\n<p> <\/p>\n<h2> How has Meta Platforms&#8217; <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/intel-shares-plunge-on-disappointing-earnings-report-weak-year-ahead-forecast\/\" title=\"Intel Shares Plunge on Disappointing Earnings Report, Weak Year Ahead Forecast\">cost-reduction efforts<\/a> positively impacted its\u200b profitability?<\/h2>\n<p><span>  Meta Platforms, the parent\u2063 company of Facebook, has reported a significant increase in revenue for the third\u2063 quarter. According to the latest earnings report, the company&#8217;s revenue grew by an impressive 23 percent. This growth\u2062 can be attributed to the company&#8217;s cost-reduction efforts and a resurgence in digital advertising revenues.<\/p>\n<p>During the quarter\u200b ended September 30, Meta Platforms generated \u200d$34.146 billion in revenue, marking a substantial 23.21 percent increase compared to the same period last \u2062year. This increase in revenue is a testament to \u2063the company&#8217;s ability to adapt and thrive\u2064 in a rapidly changing digital landscape.<\/p>\n<p>Moreover, net income also saw a significant rise of 164 percent,\u2062 reaching $11.58 billion. This \u200dincrease in net income resulted in adjusted earnings of $4.39 per share. These\u200c impressive financial results demonstrate Meta Platforms&#8217; ability to not only \u200dgenerate revenue but also effectively manage its expenses and\u2062 drive\u2064 profitability.<\/p>\n<p>The success of Meta Platforms can be attributed\u2064 to a number of\u2062 factors. Firstly, the company&#8217;s cost-reduction efforts have played a crucial role in \u2062boosting profitability. By streamlining operations and optimizing resources, Meta \u200dPlatforms has been able to reduce expenses and increase\u2064 its bottom line.<\/p>\n<p>Additionally, the resurgence\u2062 in\u200d digital advertising revenues has greatly contributed to Meta Platforms&#8217; growth. As more businesses\u2063 shift their advertising budgets to digital platforms, Meta Platforms has been able to capitalize on this\u200d trend and attract a larger share of the advertising market. The company&#8217;s ability to deliver targeted and effective advertising solutions \u200dto its users has made it an attractive\u200b platform for advertisers.<\/p>\n<p>Looking forward, Meta Platforms is well-positioned to continue its growth\u2062 trajectory. The company&#8217;s ongoing investments in innovative technologies, such as virtual reality and augmented reality, are expected to further diversify its revenue streams and attract new \u200busers. Furthermore, Meta Platforms&#8217; strong user base and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/meta-beats-third-quarter-earnings-estimates-prioritizes-ai-investments\/\" title=\"Meta surpasses Q3 earnings estimates, focuses on AI investments.\">extensive data analytics capabilities provide<\/a> \u200da solid foundation\u2064 for future growth and expansion.<\/p>\n<p>However,\u200c it is important to note that Meta \u200bPlatforms is not without challenges. The company is currently facing regulatory scrutiny and legal challenges, as \u2063evidenced by the recent lawsuits filed against it. These\u2063 lawsuits allege that Meta Platforms has knowingly targeted \u2064children with addictive features and violated\u2064 antitrust laws. How Meta Platforms \u2062addresses these challenges will play \u200da crucial role in shaping its future performance.<\/p>\n<p>In conclusion, Meta Platforms&#8217; latest earnings report paints\u200d a positive picture of the company&#8217;s financial health. The impressive growth\u200c in\u2062 revenue, net \u2064income, and adjusted earnings reflects the company&#8217;s ability\u200d to adapt to changing market dynamics and capitalize on emerging opportunities.\u2063 As\u200d Meta Platforms continues to innovate and overcome challenges, it is poised to maintain its position as \u2064a leader in the digital advertising industry.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>revenue reported for the same period last year.<\/p>\n","protected":false},"author":2491,"featured_media":2080425,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2080424","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2080424","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2491"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2080424"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2080424\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2080425"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2080424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2080424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2080424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}